K-Means Clustering Is the Process Of

question 30

Multiple Choice

k-means clustering is the process of:

• A) agglomerating observations into a series of nested groups based on a measure of similarity.
• B) organizing observations into one of a number of groups based on a measure of similarity.
• C) reducing the number of variables to consider in a data-mining approach.
• D) estimating the value of a continuous outcome variable.

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Definitions:

Payback Method

A method used in capital budgeting to estimate the time required to recoup the initial investment from its cash flows.

Payback

A method to evaluate investments by calculating the time needed to recoup the original investment.

Discount Factor

A multiplier used in time value of money calculations to determine the present value of a future sum or cash flow.

Straight-Line

A method of calculating depreciation of an asset, whereby its cost is evenly spread over its useful life.