The most widely used statistical methods for analyzing categorical outcome variablesare Discriminant Analysis and Logistic Regression. If a dependent variable is a binaryoutcome, an analyst can choose among Discriminant Analysis, Logistic and OLSRegression. The statistical assumptions required for Discriminant Analysis are essentiallythe same as for OLS Regression. Logistic Regression makes no assumption aboutthe distribution of the independent variables. They do not have to be normally distributed,linearly related or of equal variance within each group. The purpose of this study was tocompare the predication accuracy of the three statistical methods mentioned above inorder to highlight the most appropriate method. The results showed that the percentageof predicted value resulting from these three methods was highly correlated to thecoefficient of determination. However, the normal distribution of the predicted variableswas not examined. For every level of VIF and the percentage of qualitative variables, theDiscriminant Analysis method gave the most accurate result. Nevertheless, for data havingcoefficient determination of more than 0.5, all methods gave the same performance in theaverage of predicted value.