Consider the following data that shows a portion of point of sales transactions from a local bookstore. Each binary variable indicates whether or not a particular book genre is purchased within a transaction.

a. Using the first five sales transactions, compute the matching coefficients for all pairwise observations for the five binary variables.
b. Using the first five sales transactions, compute Jaccard’s coefficients for all pairwise observations for the five binary variables.
c. Based on the results from parts a and b, identify and describe the transactions that are most and least similar to each other. Discuss the difference between the results from parts a and b.

Transcribed Image Text:

Transaction Sci-fl 1 0 2 1 B 1 101 0 Travel guide 0 0 *** 0 Self help 1 1 *** 0 Blography 1 0 E 0 Children's book 1 1 ⠀ 1