Which of the Following Statements Regarding Cluster Analysis Is Not

question 63

Multiple Choice

Which of the following statements regarding cluster analysis is not true?

• A) Cluster analysis is used to seek constructs that underlie the variables.
• B) The groups are not predefined in cluster analysis.
• C) Cluster analysis does not predict relationships.
• D) Cluster analysis requires the data to be interval-scaled.

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Definitions:

Price Ceiling

a legally established maximum price for goods or services, aimed at keeping prices from rising to high levels.

Equilibrium

A condition in markets where supply equals demand, and there is no external pressure for change.

Shortage

The insufficiency of a good or service that occurs when the quantity demanded exceeds the quantity supplied; shortages occur when the price is below the equilibrium price.

Price Elasticity of Demand

The rate at which demand for a product responds to its price being altered.