Clustering – unveiling hidden patterns in your data
Clustering is a powerful tool in the UL toolkit. But what is it, and how can it help decision-makers in business? Let’s dive in.
What is clustering?
Clustering is a method of UL that involves grouping data points together based on their similarity. Unlike SL, where we have a clear target or outcome variable, UL (and, by extension, clustering) is all about finding hidden structures and patterns in data without any predefined labels.
Think of clustering as a way to discover and explore unknown territories in your data. It’s like an explorer setting out on a journey without a map, using only their observations to make sense of the landscape.
How does clustering work?
The process of clustering involves several steps:
- Feature selection
In this step, you choose the characteristics or attributes of your data that you believe can help differentiate between different groups. For example, if you’...
