Engro group, who recently sold its Engro foods start-up for a multi-million-rupees sum, is looking for another investment for fresh capital. It is considering an investment in coal (X) and solar (Y) power plant. For that they had a collected data on 5 different characteristics. Amanda has applied k-means clustering to this data for k = 2. Given the following data: Table 5.1 Observations X Y 1 20 18 2 8 20 3 36 26 4 22 12 5 14 4 Which value of k is the most appropriate to categorize these investments? Justify your choice with calculations.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Engro group, who recently sold its Engro foods start-up for a multi-million-rupees sum, is looking for another investment for fresh capital. It is considering an investment in coal (X) and solar (Y) power plant. For that they had a collected data on 5 different characteristics. Amanda has applied k-means clustering to this data for k = 2. Given the following data: Table 5.1
|
Observations |
X |
Y |
|
1 |
20 |
18 |
|
2 |
8 |
20 |
|
3 |
36 |
26 |
|
|
|
|
|
4 |
22 |
12 |
|
5 |
14 |
4 |
- Which value of k is the most appropriate to categorize these investments? Justify your choice with calculations.
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