Skip to content

FRM Part I · FRM Exam Part I · Machine Learning and Prediction

A risk team runs agglomerative hierarchical clustering on five funds using Euclidean distance. The first merge joins Funds A and B, which are 2 units apart. Distances from other funds are: C to A = 6, C to B = 10. Using single (nearest-neighbor) linkage versus complete (farthest-neighbor) linkage, what is the distance from Fund C to the new {A, B} cluster?

Single linkage gives 6 and complete linkage gives 10. Single linkage takes the smallest distance between members of the two clusters, min(6, 10), while complete linkage takes the largest, max(6, 10). The value 8 would be average linkage.

  1. ASingle linkage 6; complete linkage 10Correct
  2. BSingle linkage 10; complete linkage 6
  3. CSingle linkage 8; complete linkage 8
  4. DSingle linkage 2; complete linkage 10

Explanation

Single linkage uses the minimum pairwise distance between clusters: min(6, 10) = 6. Complete linkage uses the maximum: max(6, 10) = 10. Option 8 is the average-linkage result, which is neither.

Did you get it right without looking?

One question tells you little. A timed set on Machine Learning and Prediction shows your real accuracy, how long you take and where you lose marks.

Practise Machine Learning and PredictionFree diagnostic mock

More Machine Learning and Prediction questions