Question

The file “Week 5 Exercise.xls” has the data for the customers of a gym. The manager wants to develop a new product and wonders what segments exist in the customer base. Use the Variables “Cardio Exercise” and “Strength Exercise”. Customers had rated on a scale of 1-5 how much they liked each type of exercise (1 = not at all; 5 = very much). Use only k=2 and k=3 clusters for this analysis. Please indicate a) whether you would go with a 2 or 3 cluster solution b) your rationale for this c) the descriptions you would provide for each of the clusters/segments

Cardio	Strength
3	3
4	5
5	3
4	4
3	3
3	2
4	4
4	5
4	3
5	5
4	5
5	4
5	1
3	4
3	1
5	3
5	4
5	5
4	5
4	4
3	4
5	2
1	4
4	4
3	4
4	4
4	5
4	5
5	5
3	4
5	3
5	5
2	4
4	5
5	5
3	3
4	5
5	5
4	2
4	5
4	5
4	4
5	3
2	5
3	3
4	4
4	4
3	5
3	5
4	3
5	2
4	5
2	3
4	4
5	2
4	4
3	5
5	5
5	5
5	5
5	3
3	3
4	4
5	5
5	5
1	1
5	5
4	4
4	3
1	1
4	4
1	3
3	3
2	1
5	3
4	2
4	4
4	4
3	4
4	4
1	1
1	3
5	5
4	4
4	4
4	3
5	3
5	4
4	3
4	4
4	4
5	5
4	4
3	5
3	4
3	3
4	4
4	5
5	5
5	5
5	4
4	3
5	5
5	5
5	5
4	4
5	2

Answer 1

a) we will select 2 clusters

b) for both k=2 and k=3, we will get 2 clusters.

c) “Cardio Exercise” = 1 and also “Strength Exercise” = 1 are in one cluster, rest are in another cluster.