Which of the Following Is Not a Procedure to Check

question 37

Multiple Choice

Which of the following is not a procedure to check the quality of clustering results?

• A) Use the same method of clustering and compare the results.
• B) Split the data randomly into halves.Perform clustering separately on each half.Compare cluster centroids across the two subsamples.
• C) Perform cluster analysis on the same data using different distance measures.Compare the results across measures to determine the stability of the solutions.
• D) Delete variables randomly.Perform clustering based on the reduced set of variables.Compare the results with those obtained by clustering based on the entire set of variables.

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Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionally weighted.

Perpetuity

An annuity in which the cash flows continue forever.

Preferred Stock

A class of share capital that provides shareholders with a fixed dividend payment prior to any dividends being paid to common stockholders and typically does not confer voting rights.

Cost Computation

The process of calculating the total cost involved in manufacturing a product or providing a service.