Problem $05-05($Cluster Analysis$)$

Question $16$ of $16$

The regulation of electric and gas utilities is an important public policy question affecting consumer's choice and cost of energy orovider. 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?