Question

1.

hen large differences in variability exist among numerical variables, the data analyst needs to apply _______.

A	nominalization

B	data reduction

C	standardization

D	none of the above

2. Principal components do not refer specifically to a cluster of customers, but rather to similar behavior _______.

A

responses

B	categories

C	predictors

D	none of the above

Answer 1

(1)

Correct option:

A. normalization

EXPLANATION:

Normalization means transforming all variables in the data to a specific range. If a feature has a range [ - 1, 1] and another fature has a range [ - 100, 100], a small variation in feature 2 is more influencing than a big variation in feature 1.

(2)

Correct option:

A. responses

EXPLANATION:

In Principal Component Analysis (PCA), the consumer responses may be behavioural responses, refer to the consumer's observable responses is the use of behaviour principles.