Consider the following data that show a portion of the point of sales transactions from a grocery store. Each binary variable indicates whether or not a product is purchased as part of the transaction.

a. Using the first five sales transactions, compute the matching coefficients for all pairwise observations for the four binary variables.

b. Using the first five sales transactions, compute Jaccard’s coefficients for all pairwise observations for the four binary variables.
c. Based on the results from parts a and b, identify and describe the transactions that are most and least similar to each other. Discuss the difference between the results from parts a and b.

Transcribed Image Text:

Transaction Meat Produce 1 1 0 2 1 E 258 1 ⠀ 1 B 1 Baked goods 1 0 1 1 Candy 1 1 E 0