An analyst knows that the categorical predictor, zip_code, is an important predictor of a binary...

Vendor: SAS Institute
Product: A00-240
Update on: Jan 2, 2026
Questions: 99

SAS Institute A00-240 Question Answer

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?

Clustering the levels using the target proportion for each zip_code as input.

Clustering the levels using the zip_code values as input.

Clustering the levels using the number of cases in each zip_code as input.

Clustering the levels using dummy coded zip_code levels as inputs.