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MIS 655 GCU Data Preparation Steps before Performing Cluster Analysis Discussion


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Suppose you had information from customers who shop at a grocery store and wanted to perform cluster analysis to identify groups of customers who have similar shopping patterns. The data that you have includes the age, income, and educational level of the customer, as well as the yearly amounts each customer purchases of the following food types: fruits, vegetables, milk, cereal, peanut butter, and bread. What are some of the data preparation steps that should be taken before performing cluster analysis? Explain why these steps are necessary for ensuring robust model results. Discuss how the retailer could use the results of this cluster analysis to improve grocery sales.


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