Which of the Following Is True of Hierarchical Clustering

question 10

Multiple Choice

Which of the following is true of hierarchical clustering?

• A) All observations are put in a mega-cluster to begin with.
• B) Each of the large clusters is broken down iteratively.
• C) It is a bottom-up approach to clustering.
• D) At the end of the process, observations in the same cluster have maximum distance.

---

Definitions:

Asset Play

An investment strategy based on buying stocks of companies that are considered to have undervalued assets by the investors.

Forecast Future Earnings

The process of predicting a company's future profits based on historical data, current trends, and analysis of the firm's industry and economy.

Securities Analysis

The process of evaluating a security (stocks, bonds, etc.) in terms of its risk, value, and investment potential.

Fundamental Analysis

An approach to determining the intrinsic value of a security by examining related economic, financial, and other qualitative and quantitative factors.