A country’s information technology use has been linked to economic and societal development. A non-profit organization collects data that measure the use and impact of information technology in over 100 countries annually. The accompanying table shows a portion of the data collected, with the following variables: country number (Country), hardware industry (Hw), software industry (Sw), telecommunications industry (Tele), individual usage (IU), business usage (BU), government usage (GU), diffusion of e-business (EB), and diffusion of e-payment (EP). Each value in the table represents the score a country has achieved for a given category. The range of the score is from 1 (lowest) to 7 (highest). 

a. Perform k-means clustering to group the countries into three clusters using the following variables: individual usage, business usage, and government usage. Is data standardization necessary in this case? 

b. What are the size and cluster center values of the largest cluster? Which cluster has the highest average diffusion of e-business? Which cluster has the highest average diffusion of e-payment? 

c. Use k-means clustering to group the countries using all the variables except the country number into the same number of clusters as in part a. What are the size and cluster center values of the largest cluster?

Transcribed Image Text:

1 2 ⠀ Country 139 Hw 4.2 4.0 ⠀ 2.4 Sw 4.6 4.3 ⠀ 3.7 ⠀ EP 3.9 2.6 ⠀ 3.1