Editing Linear discriminant analysis (section)

===Bankruptcy prediction===
In [[bankruptcy prediction]] based on accounting ratios and other financial variables, linear discriminant analysis was the first statistical method applied to systematically explain which firms entered bankruptcy vs. survived. Despite limitations including known nonconformance of accounting ratios to the normal distribution assumptions of LDA, [[Edward Altman]]'s [[Z-Score Financial Analysis Tool|1968 model]]<ref >{{Cite journal
  |last=Altman  |first=Edward I.  |author-link=Edward I. Altman 
  |title=Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy
  |journal=[[The Journal of Finance]]
  |volume=23  |issue=4 
  |year=1968
  |pages=589–609
  |doi=10.2307/2978933
|jstor=2978933 }}</ref> is still a leading model in practical applications.<ref >{{Cite web
  |last1=Agarwal  |first1=Vineet
  |last2=Taffler  |first2=Richard
  |year=2005
  |title=Twenty-five years of z-scores in the UK: do they really work?
  |url=https://efmaefm.org/0efmameetings/EFMA%20ANNUAL%20MEETINGS/2006-Madrid/papers/932609_full.pdf
}}</ref><ref >{{Cite journal
  |last1=Agarwal  |first1=Vineet
  |last2=Taffler  |first2=Richard
  |year=2007
  |title=Twenty-Five Years of the Taffler Z-Score Model: Does It Really Have Predictive Ability?
  |journal=Accounting and Business Research
  |volume=37
 |issue=4
  |pages=285–300
  |doi=10.1080/00014788.2007.9663313
}}</ref><ref >{{Cite journal
  |first1=Patrick  |last1=Bimpong 
  |first2=Ishmael  |last2=Arhin
  |first3=Thomas hezkeal Khela  |last3=Nan
  |first4=Edward  |last4=Danso
  |first5=Pious  |last5=Opoku
  |first6=Arthur  |last6=Benedict
  |first7=Grace |last7=Tettey
  |display-authors=1
  |title=Assessing Predictive Power and Earnings Manipulations. Applied Study on Listed Consumer Goods and Service Companies in Ghana Using 3 Z-Score Models
  |journal=Expert Journal of Finance
  |volume=8  |issue=1
  |pages=1–26
  |year=2020
  |url=https://finance.expertjournals.com/23597712-801/
}}</ref>