In grouping customers into separate types according to their spending, internet browsing, payment method, and age a firm is engaging in what sort of analysis?
A) Data mining
B) Cluster analysis
C) Outlier detection
D) Linear regression

Question

Quizplus · Accepted Answer

The firm is engaging in cluster analysis, which is a technique of grouping data points into clusters based on similarities and differences between them. In this case, the firm is using different variables such as spending, internet browsing, payment method, and age to group customers into separate types. Data mining is a broader term that refers to the process of extracting information and insights from large datasets, while outlier detection and linear regression are other types of data analysis techniques.

In Grouping Customers into Separate Types According to Their Spending