Dl. Retzlaffroberts, A RATIO MODEL FOR DISCRIMINANT-ANALYSIS USING LINEAR-PROGRAMMING, European journal of operational research, 94(1), 1996, pp. 112-121
Citations number
7
Categorie Soggetti
Management,"Operatione Research & Management Science","Operatione Research & Management Science
The innovative hybrid model for discriminant analysis via linear progr
amming, was introduced along with the beta normalization, which was su
bsequently replaced by a new normalization. The primary weakness of th
e beta normalization, and the reason for replacing it with the new nor
malization, is that it distorts solutions and consequently does not al
ways find the best solution. It is shown here, that unfortunately, bot
h normalizations are affected by distance distortion. In addition, whe
ther a model finds the best solution is highly dependent on the criter
ion or criteria by which ''best solution'' is defined. A ratio criteri
a and associated ratio model are proposed, which avoid the problems as
sociated with distance distortion. The nonlinear ratio may be lineariz
ed in much the same way that Data Envelopment Analysis is linearized.