When Clustering Only by Dummy Variables That Represent Categorical Variables

question 39

Multiple Choice

When clustering only by dummy variables that represent categorical variables, the simplest measure of similarity between two observations is called the

• A)matching coefficient.
• B)Jaccard's coefficient.
• C)Euclidean distance.
• D)antecedent.

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Definitions:

Compounded Annually

Interest calculation method where the interest is added to the principal sum at the end of each year, so that the balance also earns interest in the following year.

Yearly Contributions

Refers to the payments or investments made annually into a plan or fund, often for retirement or savings purposes.

Interest Rate

The cost of borrowing money or the return on investment, usually expressed as a percentage of the principal amount per period of time.

Borrower's Payment

The amount of money paid by a borrower, typically on a regular schedule, to repay or service a debt.