P38Unsupervised LearningIntermediateCalculate12 min
Customer Segmentation With K-Means
Reason about scaling, K selection, and cautious cluster interpretation.
#k-means#clustering#scaling#centroids
Scenario
annual_spend ranges from 2,000 to 150,000 and purchase_frequency from 1 to 40. Scaled inertia is K=2:210, K=3:132, K=4:108, K=5:96.
Problem statement
Plan a defensible segmentation analysis.
Your Task
- Explain scaling.
- Suggest a plausible K.
- Explain why minimum inertia fails.
- Explain labels and cluster profiling.
Related Concepts
K-MeansStandardScalerInertiaCluster profiling
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