Which of the Following Statements Are True of the Hierarchical

question 65

Multiple Choice

Which of the following statements are true of the hierarchical approach? I.The approach is relatively easy to read and interpret. II.The output has the logical structure that should theoretically always exist. III.The subsequent analysis is constrained by the first combination or separation of objects. IV.It tends to be more reliable. V.If the program makes a close decision early in the analysis that subsequently proves to be wrong with respect to the clustering criterion, it can be remedied. VI.Split-sample results will tend to look more similar.

• A)I and II.
• B)I, II, III, V and VI.
• C)I, IV, V, and VI.
• D)I, II and III.
• E)IV, V, and VI.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choice.

Variable Conversion Cost

Costs that change with the level of production output, including elements like direct labor and utility expenses related to manufacturing.

Direct Material

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of the production costs.

Seasonal Product

A type of product whose demand and availability significantly depend on the season or time of the year.