An analyst knows that the categorical predictor, zip_code, is an important predictor of a binary target.
However, zip_code has too many levels to be a feasible predictor in a model. The analyst uses PROC CLUSTER to implement Greenacre’s method to reduce the number of categorical levels.
What is the correct application of Greenacre’s method in this situation?
A . Clustering the levels using the target proportion for each zip_code as input.
B . Clustering the levels using the zip_code values as input.
C . Clustering the levels using the number of cases in each zip_code as input.
D . Clustering the levels using dummy coded zip_code levels as inputs.
Answer: A