To Examine the Local Housing Market in a Particular Region

question 57

Essay

To examine the local housing market in a particular region, a sample of 120 homes sold during a year is collected. The data are given below.



Apply k-means clustering with k = 10 using LandValue ($), BuildingValue ($), Acres, Age, and Price ($) as variables. Be sure to Normalize input data, and specify 50 iterations and 10 random starts in Step 2 of the XLMiner k-Means Clustering procedure. What is the smallest cluster? What is the least dense cluster (as measured by the average distance in the cluster)?

---

Definitions:

Piece Rate

A payment method based on the amount of work completed or units produced, rather than on the amount of time spent on the work.

Clothing Manufacturer

A company that produces clothing items, from the design phase through to production and distribution to retailers.

Quota

A fixed share or a specific quantitative limit of something that one is entitled to or is required to contribute or receive.

Percent Rate

The rate of a quantity in relation to 100; often used to describe the rate of interest, inflation, or growth.