Attracted by the possible returns from a portfolio of movies, hedge funds have invested in the movie industry by financially backing individual films and/or studios. The hedge fund Star Ventures is currently conducting some research involving movies involving Adam Sandler, an American actor, screenwriter, and film producer. As a first step, Star Ventures would like to cluster Adam Sandler movies based on their gross box office returns and movie critic ratings. Using the data in the fileSandler, applyk-means clustering withk= 3 to characterize three different types of Adam Sandler movies. Base the clusters on the variables Rating and Box. Rating corresponds to movie ratings provided by critics (a higher score represents a movie receiving better reviews). Box represents the gross box office earnings in 2015 dollars. Normalize the values of the input variables to adjust for the different magnitudes of the variables.

Cluster Count Aver. Rating Aver. Box Office(M$)(in 2015) Characteristics

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2._______ ________ _________________ _____________________________ ____________________

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The selections under Characteristics are:

Low rated/low earning movies

High earning

High rated