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SECTION II Ae_mpt ANY TWO (2) questions in this section. QUESTION 2 15 Marks An international shipping |ine is currently evaluating expansions in the Caribbean

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SECTION II Ae_mpt ANY TWO (2) questions in this section. QUESTION 2 15 Marks An international shipping |ine is currently evaluating expansions in the Caribbean to better service their clients. They commissioned a study by a logistics team to evaluate routes and prices that have been recorded by other shipping lines that carry cargo into the Caribbean, South and North America. They are desirous of studying the patterns that emerge from the choices made by different agencies. Since the distance, cargo welght and cif impact decisions about how to ship. The distance is calculated as Leg 1 + Leg 2. The table gives details of the name of the shipping line. All values are representative | thousands [n their respective units). ST Line Weight (Mgl 1 1 | -3 ToR ] T e LI s ) | 10 | a) Apply the k-means algorithm with k=2 and initial centroids: 511 and 5L5 calculate the distances, centroids after each iteration and show the resulting clusters after 2 iterations. [8 marks] b) Describe the clusters based on the results obtained after the 2 jterations and discuss how the results may be applied to the shipping line. [4 marks] c} Explain two features of a good cluster. [3 marks]

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