I'm using the "Average Nearest Neighbor" tool in ArcGIS 10.3 to calculate whether my point feature class is clustered, random or dispersed.
One of the parameters is area. I tried putting different areas and discovered that if I cut the area lets say by 50% the result changes form clustered (one extreme of the graph created by the software) to dispersed (the other extreme of that very same graph).
Can someone please explain how area is being used by ArcGIS to calculate that? As far as I knoe Nearest Neighbor has nothing to do with area it's all about the distance between the points.