Actuarial Notes

Exam DISC-DA Practice Question 227

Study guide: Exam DISC-DA

An analyst clusters small commercial policies on two features: annual payroll, ranging from $50,000 to $5,000,000, and number of locations, ranging from 1 to 6. The features are not standardized, and Euclidean distance is used. What is the most likely result?

  • A) The clusters will mainly separate policies by number of locations
  • B) Both features will influence the clusters about equally
  • C) The clusters will mainly separate policies by annual payroll
  • D) Euclidean distance cannot be computed when features are in different units

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