Cluster Analysis Is a Tool That

question 85

Multiple Choice

Cluster analysis is a tool that

• A) discovers trends, predicts future events, and assesses possible course of action.
• B) searches for exact relationships between variables.
• C) identifies groups of data that fall naturally together.
• D) None of these answer choices is correct.

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Definitions:

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by the yield on government securities.

Future Exchange Rate

Future Exchange Rate is the anticipated value of one currency in terms of another currency at a specified date in the future, often determined through futures contracts.

British Securities

Stocks, bonds, or other financial instruments issued by companies or the government in the United Kingdom.

Total Return

The overall earnings on an investment, including both capital gains and income, over a specific time period.