Why Is Cluster Analysis Used on Questionnaire Data

question 23

Multiple Choice

Why is cluster analysis used on questionnaire data?

• A)To group data
• B)To describe data
• C)To determine if there is a relationship between variables
• D)To establish cause and effect

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Definitions:

Commodity Money

Currency that possesses inherent worth and serves functions beyond simply facilitating trade, like gold or silver.

Monetary Policy

The process by which a central bank controls the supply of money in an economy, primarily through interest rates, to maintain price stability and achieve high employment.

100-Percent-Reserve Banking

A banking system where banks are required to keep the full amount of each depositor's funds in reserve, meaning they cannot lend out any of the money deposited.

Fractional Reserve Economy

An economic system where banks hold a portion of customers' deposits in reserve and lend out the remainder, thus creating money.