Question

Answer all questions

1. Q2. The data-mining method that can be used in market segmentation to divide consumers into different homogeneous groups is _____.

2. 	a.	data visualization
   	b.	cluster analysis
   	c.	market analysis
   	d.	supervised learning
   	e.	None of the above

2 points   

QUESTION 3

1. Q3. The simplest measure of similarity between observations consisting solely of categorical variables is given by _____.

   	a.	the Euclidean distance
   	b.	the standardized Euclidean distance
   	c.	matching coefficient
   	d.	Jaccard's coefficient
   	e.	None of the above

2 points   

QUESTION 4

1. Q4. The k-means clustering is the process of

   	a.	agglomerating observations into a series of nested groups based on a measure of similarity
   	b.	organizing observations into one of k groups based on a measure of similarity.
   	c.	reducing the number of variables to consider in a data-mining approach
   	d.	estimating the value of a continuous outcome variable.
   	e.	None of the above

Answer 1

Answer 2. b. cluster analysis. As the name suggests, it used to divide the data into different groups (clusters) to make meaningful interpretations.

Answer 3. c. matching coefficient Also called Simple Matching Coefficient (SMC) is used for comparing similarities in datasets.

Answer 4. b. k - means clustering is the process of organizing observations into one of k groups based on a measure of similarity. In simple words, it divides/partitions n observations into k clusters and each observation is associated with a cluster having nearest mean to the observation.