Discuss the Similarities and Differences Between Factor and Cluster Analyses

question 17

Essay

Discuss the similarities and differences between factor and cluster analyses.

---

Definitions:

Private Consumption

The total value of all goods and services consumed by individuals and households for personal use.

Pareto Efficient

A resource distribution condition where no reallocation can improve one person's situation without detrimentally affecting another person's situation.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use does not reduce its availability to others.

Private Good

A product or service that is consumable and excludable, meaning its use can be restricted to paying customers.