1.) The regulation of electric and gas utilities is an important public policy question affecting consumer’s choice and cost of energy provider. To inform deliberation on public policy, data on eight numerical variables have been collected for a group of energy companies. To summarize the data, hierarchical clustering has been executed using Euclidean distance as the similarity measure and Ward’s method as the clustering method. Based on the following dendrogram, what is the most appropriate number of clusters to organize these utility companies? Answer:  What is the most appropriate number of clusters to organize these utility companies?

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
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1.) The regulation of electric and gas utilities is an important public policy question affecting consumer’s choice and cost of energy provider. To inform deliberation on public policy, data on eight numerical variables have been collected for a group of energy companies. To summarize the data, hierarchical clustering has been executed using Euclidean distance as the similarity measure and Ward’s method as the clustering method. Based on the following dendrogram, what is the most appropriate number of clusters to organize these utility companies?

Answer:

 What is the most appropriate number of clusters to organize these utility companies?

Distance
11.0
10.5
10.0
9.5
9.0
8.5
8.0
7.5
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
10 13 4 20 2 21 1 18 14 19 3 9 6 8 16 11 5 7 12 15 17
Cluster
Transcribed Image Text:Distance 11.0 10.5 10.0 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 10 13 4 20 2 21 1 18 14 19 3 9 6 8 16 11 5 7 12 15 17 Cluster
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