In Q 73;
Classification of industries based on statistical similarities does result into arbitrary or random company classification (like for instance automobile co. and apparel co. falling in same grp coz of high correlation)
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Han I guess what you’re saying is correct so option C should be the answer.
I cannot understand the term nonintuitive in context of this question in option A
Nonintuitive here means not very logical. Coz stats ignores the fundamentals ,the classification is based on factors like strong correlation.
What is the answer of this question?
Option A
This was solved in class by sir.
Non Intuitive
Ex suppose there is 2 company HDFC bank and ONGC. The ONGC should come under oil & gas.HDFC come under banking sector but suppose we have taken the data of 30 years and there is a positive correction between hdfc and ongc so statistics grouping will put both the company in one group so it is non Intuitive
Please explain Option C then