In an effort to inform political leaders and economists discussing the deregulation of electric and gas utilities, data on eight numerical variables from utility companies have been grouped using hierarchical clustering based on Euclidean distance to measure dissimilarity between observations and complete linkage as the agglomeration method. (a) Based on the following dendrogram, what is the most appropriate number of clusters to organize these utility companies? 6.5 6.0 5.5 5.0 4.5- 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 Between-Cluster Distance 2.577 10 13 4 20 2 21 5 1 18 14 19 6 3 9 7 12 15 17 8 16 11 Cluster clusters are appropriate based on complete linkage. (b) Using the following data on the Observations 10, 13, 4, and 20, confirm that the complete linkage distance between the cluster containing (10, 13) and the cluster containing {4, 20) is 2.5 units as displayed in the dendrogram.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
In an effort to inform political leaders and economists discussing the deregulation of electric and gas utilities, data on eight numerical variables from utility companies have been grouped using
hierarchical clustering based on Euclidean distance to measure dissimilarity between observations and complete linkage as the agglomeration method.
(a) Based on the following dendrogram, what is the most appropriate number of clusters to organize these utility companies?
Distance
6.5
6.0
5.5
5.0
4.5 ---
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
Between-Cluster Distance
2.577
10 13 4 20 2 21 5 1 18 14 19 6 3 9 7 12 15 17 8 16 11
Cluster
clusters are appropriate based on complete linkage.
(b) Using the following data on the Observations 10, 13, 4, and 20, confirm that the complete linkage distance between the cluster containing (10, 13) and the cluster containing {4, 20} is 2.577
units as displayed in the dendrogram.
Transcribed Image Text:In an effort to inform political leaders and economists discussing the deregulation of electric and gas utilities, data on eight numerical variables from utility companies have been grouped using hierarchical clustering based on Euclidean distance to measure dissimilarity between observations and complete linkage as the agglomeration method. (a) Based on the following dendrogram, what is the most appropriate number of clusters to organize these utility companies? Distance 6.5 6.0 5.5 5.0 4.5 --- 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 Between-Cluster Distance 2.577 10 13 4 20 2 21 5 1 18 14 19 6 3 9 7 12 15 17 8 16 11 Cluster clusters are appropriate based on complete linkage. (b) Using the following data on the Observations 10, 13, 4, and 20, confirm that the complete linkage distance between the cluster containing (10, 13) and the cluster containing {4, 20} is 2.577 units as displayed in the dendrogram.
(b) Using the following data on the Observations 10, 13, 4, and 20, confirm that the complete linkage distance between the cluster containing {10, 13) and the cluster containing {4, 20} is 2.577
units as displayed in the dendrogram.
Income/Debt
Return
Cost
Load
Peak
Sales
PercentNuclear
Total FuelCosts
Observation
10
0.032
0.741
0.700
-0.892
-0.173
-0.693
1.620
-0.863
13
0.195
0.875
0.748
-0.735
1.013
-0.489
2.275
-1.035
4
-0.510
0.207
-0.004
-0.219
-0.943
-0.702
1.328
-0.724
Distance from Observation 10 and Observation 4:
Distance from Observation 10 and Observation 20:
Distance from Observation 13 and Observation 4:
Distance from Observation 13 and Observation 20:
20
0.466
0.474
-0.490
0.655
0.083
-0.458
1.733
-0.721
If required, round your answers to three decimal places. Do not round intermediate calculations.
Based on complete linkage, the merger of cluster (10, 13) and cluster {4, 20} is Select your answer -
of these four distances. Thus, the increase in within-cluster
dissimilarity of the new merged cluster - Select your answer based on the distance between Observation 13 and Observation 4.
Transcribed Image Text:(b) Using the following data on the Observations 10, 13, 4, and 20, confirm that the complete linkage distance between the cluster containing {10, 13) and the cluster containing {4, 20} is 2.577 units as displayed in the dendrogram. Income/Debt Return Cost Load Peak Sales PercentNuclear Total FuelCosts Observation 10 0.032 0.741 0.700 -0.892 -0.173 -0.693 1.620 -0.863 13 0.195 0.875 0.748 -0.735 1.013 -0.489 2.275 -1.035 4 -0.510 0.207 -0.004 -0.219 -0.943 -0.702 1.328 -0.724 Distance from Observation 10 and Observation 4: Distance from Observation 10 and Observation 20: Distance from Observation 13 and Observation 4: Distance from Observation 13 and Observation 20: 20 0.466 0.474 -0.490 0.655 0.083 -0.458 1.733 -0.721 If required, round your answers to three decimal places. Do not round intermediate calculations. Based on complete linkage, the merger of cluster (10, 13) and cluster {4, 20} is Select your answer - of these four distances. Thus, the increase in within-cluster dissimilarity of the new merged cluster - Select your answer based on the distance between Observation 13 and Observation 4.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman