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Using the Data Given, Apply Hierarchical Clustering with 10 Clusters

question 49

Essay

Using the data given, apply hierarchical clustering with 10 clusters using LandValue ($), BuildingValue ($), Acres, Age, and Price ($) 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 clusters in the
hierarchical clustering.
b. Identify the cluster with the largest average price. Using all the variables, how would you characterize this cluster?
c. Identify the smallest cluster.


Definitions:

Capital Deficiency

A situation where a company's total capital is less than the par value of its capital stock.

Noncash Assets

Items of value owned by a business or individual that are not in the form of cash, such as real estate, equipment, and patents.

Income Ratios

Financial metrics that examine a company's income or profit relative to sales, assets, equity, or other financial metrics, providing insight into the efficiency and profitability of the company.

Capital Balances

Reflects the amount of capital that each partner or shareholder has contributed to a partnership or corporation, or their ownership stake.

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