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Basic Question 5 of 8
If you need to group 1,000 companies based on their financial characteristics (e.g. total assets, total revenue, costs and profits) and operating characteristics (e.g. employee headcount), you will most likely to use ______ for the task.
B. CART
C. K-Nearest Neighbor
A. K-means clustering
B. CART
C. K-Nearest Neighbor
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe unsupervised machine learning algorithms - including principal components analysis, k-means clustering, and hierarchical clustering - and determine the problems for which they are best suited;
CFA® 2025 Level II Curriculum, Volume 1, Module 6.