Which of the Following Is Not True About Cluster Analysis

question 49

Multiple Choice

Which of the following is not true about cluster analysis?

• A)it is a technique for grouping individuals or objects into unknown groups.
• B)there are two approaches to clustering- hierarchical and nonhierarchical.
• C)the centroid - the average value of the objects in a cluster on each of the variables making up each object's profile - is used to describe the clusters.
• D)there is a single approach to determining the appropriate number of clusters

Apply the principle of diminishing marginal utility to various economic scenarios.

Evaluate how consumer behavior adapts when faced with utility maximization opportunities.

Apply the concept of utility to explain consumer choices and market phenomena such as the water-diamond paradox.

Recognize the role of price in consumer decision-making and utility maximization.

---

Definitions:

Cash Flows

The total amount of money being transferred in and out of a business, especially affecting liquidity.

IRR

The Internal Rate of Return; a financial metric used to estimate the profitability of potential investments.

Equivalent Annual Annuity

A financial term referring to the annual cash flow from an investment over its lifespan, adjusted to reflect equal annual payments.

Cost of Capital

The target earnings rate that a company seeks on investments to preserve its value in the market and gather funds.