As part of the quarterly reviews, the manager of a retail store analyzes the quality of customer service based on the periodic customer satisfaction ratings (on a scale of 1 to 10 with 1 = Poor and 10 = Excellent). To understand the level of service quality, which includes the waiting times of the customers in the checkout section, he collected the following data on 100 customers who visited the store.

Apply hierarchical clustering with 5 clusters using Wait Time (min), Purchase Amount ($), Customer Age, and Customer Satisfaction Rating as variables. Be sure to Normalize input data in Step 2 of the XLMiner Hierarchical Clustering procedure. Use Ward's method as the clustering method.
a. Use a PivotTable on the data in the HC_Clusters1 worksheet to compute the cluster centers for the five clusters in the hierarchical clustering.
b. Identify the cluster with the largest average waiting time. Using all the variables, how would you characterize this cluster?
c. Identify the smallest cluster.
d. By examining the dendrogram on the HC_Dendrogram worksheet (as well as the sequence of clustering stages in HC_Output1), what number of clusters seems to be the most natural fit based on the distance?

Question

As part of the quarterly reviews, the manager of a retail store analyzes the quality of customer service based on the periodic customer satisfaction ratings (on a scale of 1 to 10 with 1 = Poor and 10 = Excellent). To understand the level of service quality, which includes the waiting times of the customers in the checkout section, he collected the following data on 100 customers who visited the store.

Apply hierarchical clustering with 5 clusters using Wait Time (min), Purchase Amount ($), Customer Age, and Customer Satisfaction Rating as variables. Be sure to Normalize input data in Step 2 of the XLMiner Hierarchical Clustering procedure. Use Ward's method as the clustering method. 
a. Use a PivotTable on the data in the HC_Clusters1 worksheet to compute the cluster centers for the five clusters in the hierarchical clustering.
b. Identify the cluster with the largest average waiting time. Using all the variables, how would you characterize this cluster?
c. Identify the smallest cluster. 
d. By examining the dendrogram on the HC_Dendrogram worksheet (as well as the sequence of clustering stages in HC_Output1), what number of clusters seems to be the most natural fit based on the distance?

Quizplus · Accepted Answer

The Answer of As part of the quarterly reviews, the manager of a retail store analyzes the quality of customer service based on the periodic customer satisfaction ratings (on a scale of 1 to 10 with 1 = Poor and 10 = Excellent). To understand the level of service quality, which includes the waiting times of the customers in the checkout section, he collected the following data on 100 customers who visited the store.

Apply hierarchical clustering with 5 clusters using Wait Time (min), Purchase Amount ($), Customer Age, and Customer Satisfaction Rating as variables. Be sure to Normalize input data in Step 2 of the XLMiner Hierarchical Clustering procedure. Use Ward's method as the clustering method. 
a. Use a PivotTable on the data in the HC_Clusters1 worksheet to compute the cluster centers for the five clusters in the hierarchical clustering.
b. Identify the cluster with the largest average waiting time. Using all the variables, how would you characterize this cluster?
c. Identify the smallest cluster. 
d. By examining the dendrogram on the HC_Dendrogram worksheet (as well as the sequence of clustering stages in HC_Output1), what number of clusters seems to be the most natural fit based on the distance?

As Part of the Quarterly Reviews, the Manager of a Retail