Activity Instruction

This unit introduces the concept of cluster analysis. For this assignment, apply cluster analysis to predict customers' tendency to bankruptcy.

To complete this assignment:
• Examine the Spending and Bankruptcy Data Set, linked in the Resources, to identify appropriate data needed for your analysis.·

Apply the k-means algorithm to the appropriate data file using standardized/normalized scores of input variables.·

Set k to 2, to reflect two clusters: history of bankruptcy and no history of bankruptcy.·

Partition the data records into training and validation sets. Describe how your partition was established.·

Use SAS Enterprise Miner or other relevant data mining software, such as XLMiner with utility, to perform cluster analysis.·

Identify the groupings obtained from your analysis, and what they might reveal about tendency of bankruptcy.

Attachment:- cf-spending-bankruptcy--.rar