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Percept Variance,Subadditivity and the Metric Classification of Similarity,and Dissimilarity Data
Authors:David B MacKay  Bryan Lilly
Institution:(1) Kelley School of Business, Indiana University, USA;(2) College of Business Administration, University of Wisconsin Oshkosh, USA
Abstract:Percept variance is shown to change the additive property of city-block distances and make city-block distances more subadditive than Euclidean distances. Failure to account for percept variance will result in the misclassification of city-block data as Euclidean. A maximum likelihood estimation procedure is proposed for the multidimensional scaling of similarity data characterized by percept variance. Monte Carlo and empirical experiments are used to evaluate the proposed approach.
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