Engro group, who recently sold its Engro foods start-up for a multi-million-rupees sum, is looking for another investment for fresh capital. It is considering an investment in coal (X) and solar (Y) power plant. For that they had a collected data on 5 different characteristics. Amanda has applied k-means clustering to this data for k = 2. Given the following data: Table 5.1   Observations        X Y 1 20 18 2 8 20 3 36 26       4 22 12 5 14 4       Which value of k is the most appropriate to categorize these investments? Justify your choice with calculations.

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
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Engro group, who recently sold its Engro foods start-up for a multi-million-rupees sum, is looking for another investment for fresh capital. It is considering an investment in coal (X) and solar (Y) power plant. For that they had a collected data on 5 different characteristics. Amanda has applied k-means clustering to this data for k = 2. Given the following data: Table 5.1

 

Observations

       X

Y

1

20

18

2

8

20

3

36

26

 

 

 

4

22

12

5

14

4

 

 

 

  1. Which value of k is the most appropriate to categorize these investments? Justify your choice with calculations.
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