The regulation of electric and gas utilities is an important public policy question affecting consumer€™s choice and cost of energy provider. To inform deliberation on public policy, data on eight numerical variables have been collected for a group of energy companies. To summarize the data, hierarchical clustering has been executed using Euclidean distance as the similarity measure and Ward€™s method as the clustering method. Based on the following dendrogram, what is the most appropriate number of clusters to organize these utility companies?

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11.0 10.5 10.0 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 10 13 4 20 2 21 1 18 14 19 3 9 6 8 16 11 5 7 12 15 17 Cluster Distance