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2. The personnel director (HR) of a firm has developed two tests to help determine whether potential employees would perform successfully in a particular position. To help estimate the usefulness of the tests, the director gives both tests to 43 employees that currently hold the position. Table 5 gives the scores of each employee on both tests and indicates whether the employee is currently performing successfully or unsuccessfully in the position. If the employee is performing successfully, we set the dummy variable Group is set equal to 1; if the employee is performing unsuccessfully, we set Group equal to 0. Let x1 and x2 denote the scores of a potential employee on tests 1 and 2.
Perform discriminant analysis on the data and interpret the result, including the confusion matrix. Include all required steps in assessing the final model. By trial and error find the threshold which minimizes prediction relative error.
Please provide your work in detail and include in-text citations. At least six (6) peer-reviewed references are required for PA’s and CLA’s
*Please refer to the Grading Criteria for Professional Assignments in the University Policies for specific guidelines and expectations.
Results on the Tests Taken by Employees
* table attached
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