3. Xi technology limited wants to know how a set of 25 customers can be re-grouped based on nine mobile application usage variables. The firm performed a research technique on the ratings received from customers. Data and results of the data analysis have been shown below. (2+2+2+1=7 marks) a) What is the appropriate number of clusters? Justify your answer using agglomerative clustering table and Dendrogram? b) Describe the characteristics of these clusters and name the clusters? c) Based on this Dendrogram provided below, comment on the homogeneity/heterogeneity of a 4-cluster solution vis--vis a 2-cluster solution. d) Explain the difference between the Wards procedure and Centroid method of clustering?

Variable 1 (V1): Apps solve my problem regarding product usage Variable 2 (V2): Apps increase my knowledge about the product Variable 3 (V3): Mobile apps are fun Variable 4 (V4): Mobile apps are very trendy Variable 5 (V5): Quick responses to any idea I post in apps Variable 6 (V6): Contents of mobile apps seem interesting Variable 7 (17): Apps provide information related to my needs Variable 8 (V8): Apps help find people sharing common interests with me Variable 9 (V9): Apps help strengthen my connections with other members Stage Next Stage 1 A CON 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Cluster Combined Cluster 1 Cluster 2 18 25 11 21 7 13 6 11 3 8 9 24 1 9 17 22 16 20 7 18 5 15 12 19 2 5 1 23 14 16 12 14 1 4 2 17 6 7 2 10 3 6 1 12 1 2 1 3 Agglomeration Schedule Coefficients Stage Cluster First Appears Cluster 1 Cluster 2 .000 0 0 .000 0 0 .000 0 0 .000 0 2 .000 0 0 .500 0 0 1.333 0 6 2.333 0 0 4.333 0 0 6.333 3 1 8.333 0 0 10.833 0 0 13.500 0 11 16.667 7 0 20.000 0 9 23.767 12 15 28.467 14 0 33.200 13 8 39.200 4 10 45.967 18 0 56.411 5 19 75.511 17 16 202.319 22 20 465.440 23 21 10 4 10 19 21 7 14 18 15 19 13 16 18 17 16 22 22 20 21 23 24 23 24 2009 Nolalalala Dendrogram using Ward Linkage Rescaled Distance Cluster Combine 10 15 20 - 25 25 18 24 25 23 7 22 13 21 11 20 21 19 6 18 3 17 8 16 17 15 22 14 5 13 15 12 2 11 10 10 12 9 19 8 16 7 20 6 14 5 9 4 24 3 1 2 23 1 4 V1 V2 V3 V4 V5 V6 V7 V8 V9 2 5 3 2 2 5 LOGIN 5 2 2 3 3 5 1 4 4 1 2 1 3 4 1 3 1 1 4 2 2 5 4 4 1 Cluster Membership 3 1 2 3 1 2 2 2 3 3 5 2 4 5 1 1 2 3 4 1 2 1 3 5 1 4 AAI 5 3 1 5 2 2 3 1 5 1 2 4 3 5 2 5 1 3 5 4 2 1 4 5 3 5 2 SNNOIN-INDI+NN-NOINDIN-NONNN 3 4 1 3 4 1 1 1 3 3 1 3 1 2 5 3 5 1 3 3 1 5 2 3 1 1 1 4 2 2 5 5 4 1 2 5 2 5 1 2 1 1 5 1 2 5 3 5 3 4 4 4 1 3 4 1 1 1 4 4 1 2 1 1 4 1 5 1 2 1 1 4 4 4 1 WINWNWNINN ANON 2 3 1 3 4 5 1 2 2 |- 2 5 2 5 2 3 2 1 5 2 3 2 WNIONWN on 4 1 1 1 1 4 1 2 5 1 2 1 4 4 2 2 NWWN 1 2 2 1 5 3 3 1 2 5 1 1 1 5 2 3 3 2 1 3 3 2 4 2 No 2 Variable 1 (V1): Apps solve my problem regarding product usage Variable 2 (V2): Apps increase my knowledge about the product Variable 3 (V3): Mobile apps are fun Variable 4 (V4): Mobile apps are very trendy Variable 5 (V5): Quick responses to any idea I post in apps Variable 6 (V6): Contents of mobile apps seem interesting Variable 7 (17): Apps provide information related to my needs Variable 8 (V8): Apps help find people sharing common interests with me Variable 9 (V9): Apps help strengthen my connections with other members Stage Next Stage 1 A CON 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Cluster Combined Cluster 1 Cluster 2 18 25 11 21 7 13 6 11 3 8 9 24 1 9 17 22 16 20 7 18 5 15 12 19 2 5 1 23 14 16 12 14 1 4 2 17 6 7 2 10 3 6 1 12 1 2 1 3 Agglomeration Schedule Coefficients Stage Cluster First Appears Cluster 1 Cluster 2 .000 0 0 .000 0 0 .000 0 0 .000 0 2 .000 0 0 .500 0 0 1.333 0 6 2.333 0 0 4.333 0 0 6.333 3 1 8.333 0 0 10.833 0 0 13.500 0 11 16.667 7 0 20.000 0 9 23.767 12 15 28.467 14 0 33.200 13 8 39.200 4 10 45.967 18 0 56.411 5 19 75.511 17 16 202.319 22 20 465.440 23 21 10 4 10 19 21 7 14 18 15 19 13 16 18 17 16 22 22 20 21 23 24 23 24 2009 Nolalalala Dendrogram using Ward Linkage Rescaled Distance Cluster Combine 10 15 20 - 25 25 18 24 25 23 7 22 13 21 11 20 21 19 6 18 3 17 8 16 17 15 22 14 5 13 15 12 2 11 10 10 12 9 19 8 16 7 20 6 14 5 9 4 24 3 1 2 23 1 4 V1 V2 V3 V4 V5 V6 V7 V8 V9 2 5 3 2 2 5 LOGIN 5 2 2 3 3 5 1 4 4 1 2 1 3 4 1 3 1 1 4 2 2 5 4 4 1 Cluster Membership 3 1 2 3 1 2 2 2 3 3 5 2 4 5 1 1 2 3 4 1 2 1 3 5 1 4 AAI 5 3 1 5 2 2 3 1 5 1 2 4 3 5 2 5 1 3 5 4 2 1 4 5 3 5 2 SNNOIN-INDI+NN-NOINDIN-NONNN 3 4 1 3 4 1 1 1 3 3 1 3 1 2 5 3 5 1 3 3 1 5 2 3 1 1 1 4 2 2 5 5 4 1 2 5 2 5 1 2 1 1 5 1 2 5 3 5 3 4 4 4 1 3 4 1 1 1 4 4 1 2 1 1 4 1 5 1 2 1 1 4 4 4 1 WINWNWNINN ANON 2 3 1 3 4 5 1 2 2 |- 2 5 2 5 2 3 2 1 5 2 3 2 WNIONWN on 4 1 1 1 1 4 1 2 5 1 2 1 4 4 2 2 NWWN 1 2 2 1 5 3 3 1 2 5 1 1 1 5 2 3 3 2 1 3 3 2 4 2 No 2