In Cluster Analysis,if the Range of the Variables Is Drastically

question 65

Multiple Choice

In cluster analysis,if the range of the variables is drastically different,then the

• A) standard error will be large
• B) cluster program will not be able to arrive at a solution
• C) variables with the largest ranges will dominate the solution
• D) the distance metric will exceed the level of aggregation

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Definitions:

Carrying Cost

Expenses associated with holding inventory, including storage, handling, insurance, and opportunity costs.

Annual Demand

The total quantity of a product or service that consumers are willing and able to purchase in a given year.

Orders

Instructions given to buy or sell securities or other types of financial assets.

Break-Even Default Rate

The rate at which defaults on loans or investments would need to reach before an investor or institution starts to lose money.