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Which clustering algorithm is often used for customer segmentation?
Practice Questions
Q1
Which clustering algorithm is often used for customer segmentation?
K-Means
Linear Regression
Decision Trees
Support Vector Machines
Questions & Step-by-Step Solutions
Which clustering algorithm is often used for customer segmentation?
Steps
Concepts
Step 1: Understand what clustering means. Clustering is a way to group similar items together.
Step 2: Know that customer segmentation is about dividing customers into groups based on their behaviors or characteristics.
Step 3: Learn about K-Means, which is a method used to perform clustering.
Step 4: Recognize that K-Means works by finding 'centroids' or center points for each group of customers.
Step 5: Understand that K-Means is popular because it is easy to use and works quickly with large amounts of data.
No concepts available.
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