Consider the following portion of data that lists information about an online retailers annual revenues (Revenue in

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Consider the following portion of data that lists information about an online retailer’s annual revenues (Revenue in $), the number of products available on the retailer’s website (SKUs), and the number of visits to the website per day (Visits):


a. Without transforming the values, compute the Euclidean distance for all pairwise observations of websites 001, 003, and 005 based on annual revenues, SKUs, and visits per day. Make sure to exclude the Website IDs from your calculation.
b. Compute the min-max normalized values for annual revenues, SKUs, and visits per day, and then compute the Euclidean distance for all pairwise observations of websites 001, 003, and 005. Discuss the differences in parts a and b. Make sure to exclude the Website IDs from your calculation.
c. Using the min-max normalized values, compute the Manhattan distance for all pairwise observations of websites 001, 003, and 005. Discuss the difference
between the Euclidean and Manhattan distances. Make sure to exclude the Website IDs from your calculation.

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Business Analytics Communicating With Numbers

ISBN: 9781260785005

1st Edition

Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen

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