Which Statement Is Not True About Cluster Analysis

question 49

Multiple Choice

Which statement is not true about cluster analysis?

• A)Cluster analysis is a technique for analyzing data when the criterion or dependent variable is categorical and the independent variables are interval in nature.
• B)Cluster analysis is also called classification analysis or numerical taxonomy.
• C)Groups or clusters are suggested by the data,not defined a priori.
• D)Objects in each cluster tend to be similar to each other and dissimilar to objects in the other clusters.

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Definitions:

Binary Variable

A variable that takes on one of exactly two possible values, typically represented or coded as 0 and 1.

Processes

A series of actions or steps taken in order to achieve a particular end, often referring to sequences in manufacturing or computation.

Solver

A computational tool used in spreadsheet programs to find optimal solutions to complex decision-making problems by changing multiple variables.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.