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Euclidean distance can be used to calculate the dissimilarity between two observations. Let u = (25, $350) correspond to a 25-year-old customer that spent $350 at Store A in the previous fiscal year. Let v = (53, $420) correspond to a 53-year-old customer that spent $4,100 at Store A in the previous fiscal year. Calculate the dissimilarity between these two observations using Euclidean distance.
Indifference Curve
A graph representing combinations of two goods between which a consumer is indifferent, showing preferences in consumption.
Budget Constraint
The limit on the consumption patterns of individuals or entities, based on their income and the prices of goods and services.
Marginal Utility
The additional satisfaction or utility received by consuming an additional unit of a good or service.
Marginal Utility
The additional satisfaction or utility that a person receives from consuming one additional unit of a good or service.
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