Business / Agriculture / Multiple Basing Points: A method of regional pricing in milk marketing orders that would allow more than one basing point, or 'surplus area,' to be used. Surplus areas are administratively defined as areas with low Class I utilization, meaning that a relatively small percentage of the milk produced in an area is used in that area as Class I (fluid) milk. In a multiple basing point system, the order used as the basing point has the smallest Class I differential (the difference between the Class I price and the Class III price). The Class I differential for other orders is then based on transportation costs to the nearest basing point plus the minimum differential.
Business / Agriculture / Basing Point: A geographical site used to establish fixed rates and/or prices for federal milk marketing orders. Generally, rates or prices increase according to the distance from the basing point. The FAIR Act of MORE
Business / Finance / Multiple-Discriminant Analysis (MDA): Statistical technique for distinguishing between two groups on the basis of their observed characteristics. MORE