Clustering Segments a Heterogeneous Population of More Homogeneous Subgroups

question 65

True/False

Clustering segments a heterogeneous population of more homogeneous subgroups.

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Definitions:

Authority

Authority refers to the power or right given to an individual or organization to make decisions, direct others, and enforce obedience.

Profit Margin

A financial metric indicating the percentage of income left over from revenues after accounting for costs and expenses.

Activity Base

A measure used to allocate costs to activities, such as units produced, hours worked, or miles driven.

Service Departments

Units within an organization that support other departments but do not directly contribute to profit, such as human resources and maintenance.