A local pizza store wants to get a better sense of who its customers are. The accompanying
Question:
A local pizza store wants to get a better sense of who its customers are. The accompanying table shows a portion of data that it collected on 30 randomly selected customers. Variables include age, female (1 if female, 0 otherwise), annual income, married (1 if married, 0 otherwise), own (1 if own residence, 0 otherwise), college (1 if completed college degree, 0 otherwise), household size (Size), and annual store spending (Spending).
a. Perform agglomerative clustering to group the customers based on the numerical variables only. Use the Euclidean distance and Ward’s clustering method to cluster the customers into two clusters. Describe each cluster of customers based on the cluster characteristics.
b. Use agglomerative clustering to group the customers based on the categorical variables only. Use matching coefficients and the complete linkage clustering method to cluster the customers into two clusters. Describe each cluster of customers based on the cluster characteristics.
Step by Step Answer:
Business Analytics Communicating With Numbers
ISBN: 9781260785005
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen