Using the Data Given, Apply Hierarchical Clustering with 5 Clusters

question 25

Essay

Using the data given, apply hierarchical clustering with 5 clusters using Wait Time (min), Purchase Amount ($),
Customer Age, and Customer Satisfaction Rating as variables. Be sure to Normalize input data in Step 2 of the
XLMiner Hierarchical Clustering procedure. Use Ward's method as the clustering method.
a. Use a PivotTable on the data in the HC_Clusters1 worksheet to compute the cluster centers for the five clusters
in the hierarchical clustering.
b. Identify the cluster with the largest average waiting time. Using all the variables, how would you characterize
this cluster?
c. Identify the smallest cluster.
d. By examining the dendrogram on the HC_Dendrogram worksheet (as well as the sequence of clustering stages
in HC_Output1), what number of clusters seems to be the most natural fit based on the distance?

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Definitions:

Low Tech

Technologies or products that are characterized by simplicity and lack of advanced features, often appealing due to their ease of use and reliability.

High Effort

Pertains to tasks or activities that require a significant amount of work, time, or resources to complete.

Monetary Compensation

Payment received by an employee from an employer in the form of money for the services performed, which may include wages, salaries, and bonuses.

Service Failure

A situation where a service does not meet the customer's expectations, leading to dissatisfaction and potentially damage to the service provider's reputation.