I've studied statistics now for almost two years and I'm starting to believe I have missed something very fundamental.
I'm doing discriminant analysis where, as I understand it, I can use dummy variables as independent variables. However, one assumption seem to be that the data is drawn from a multivariate normal distribution. Further, the marginal distributions of a multivariate normal distribution are normal (but not necessarily the other way around).
Now, if I use a dichotomous variable (yes/no, etc) as a independent variable, how can the multivariate distribution be normal since a dichotomous variable certainly is not?