Podcast
Questions and Answers
What is the primary objective of cluster analysis?
What is the primary objective of cluster analysis?
- Grouping observations based on their similarities (correct)
- Grouping observations based on their average characteristics
- Grouping observations based on their distance from each other
- Grouping observations based on their differences
In which type of space is it possible to measure distance in real numbers?
In which type of space is it possible to measure distance in real numbers?
- Space with discrete values
- Euclidean space (correct)
- Space with high variability
- Non-euclidean space
What does a centroid represent in the context of clustering?
What does a centroid represent in the context of clustering?
- The least representative point in a cluster
- An average or center of a cluster (correct)
- A random element in a cluster
- A typical element of a cluster
How are observations typically divided in cluster analysis?
How are observations typically divided in cluster analysis?
Which application area involves segmenting customers based on demographics and transaction history?
Which application area involves segmenting customers based on demographics and transaction history?
What is used as a means to determine the 'similarity' of two or more points in some d-dimensional space?
What is used as a means to determine the 'similarity' of two or more points in some d-dimensional space?
What is the purpose of clustering based on interests, demographics, gender, and salary in HR?
What is the purpose of clustering based on interests, demographics, gender, and salary in HR?
In finance, what type of portfolios can be created using clustering analysis?
In finance, what type of portfolios can be created using clustering analysis?
How do clustering methods measure similarity between observations?
How do clustering methods measure similarity between observations?
What does a large distance between two observations imply?
What does a large distance between two observations imply?
In what way can clusters help a business in finance understand market positioning?
In what way can clusters help a business in finance understand market positioning?
How can selecting stocks from different clusters benefit creating a balanced portfolio?
How can selecting stocks from different clusters benefit creating a balanced portfolio?
What is the primary goal of clustering analysis?
What is the primary goal of clustering analysis?
Which measure is used to compute the similarity between observations in clustering?
Which measure is used to compute the similarity between observations in clustering?
How are points in a cluster typically related to each other?
How are points in a cluster typically related to each other?
What is one common application of clustering in finance?
What is one common application of clustering in finance?
Which clustering method focuses on creating a hierarchy of clusters?
Which clustering method focuses on creating a hierarchy of clusters?
In clustering, what does the concept of 'natural clusters' refer to?
In clustering, what does the concept of 'natural clusters' refer to?
