Question: Centroid Table Attributes Cluster_0 Cluster_1 Cluster_2 Cluster_3 Cluster_4 Balance 0.246 1.893 0.563 -0.467 1.396 Balance_Frequency -0.042 0.300 0.435 -0.091 0.436 Purchases -0.366 11.044 1.350 -0.098

Centroid Table

Attributes

Cluster_0

Cluster_1

Cluster_2

Cluster_3

Cluster_4

Balance

0.246

1.893

0.563

-0.467

1.396

Balance_Frequency

-0.042

0.300

0.435

-0.091

0.436

Purchases

-0.366

11.044

1.350

-0.098

-0.011

One-off Purchases

-0.247

10.439

1.150

-0.160

-0.224

Installment Purchases

-0.412

6.923

1.079

0.064

0.384

Cash Advance

0.360

0.408

-0.001

-0.398

0.228

Purchase Frequency

-0.906

1.033

1.117

0.644

0.008

One-off Purchases Frequency

-0.417

1.893

1.617

-0.041

-0.457

Purchases Installments Frequency

-0.792

0.969

0.899

0.584

0.211

Cash_Advance_Frequency

0.523

-0.269

-0.123

-0.529

-0.154

Cash_Advance_Trx

0.376

0.051

-0.039

-0.399

0.057

Purchases_Trx

-0.498

5.281

1.641

0.005

0.197

Credit_Limit

-0.048

3.019

1.009

-0.276

0.085

Payments

-0.040

8.040

0.837

-0.275

0.062

Minimum_Payments

-0.001

1.100

0.124

-0.164

11.210

Prc_Full_Payment

-0.425

1.077

0.298

0.370

-0.538

Tenure

-0.093

0.304

0.287

0.009

0.295

1- Which cluster in the Centroid table is mostly compacted and why?

2- Examine the clusters generated by RM, what customer segmentation does each of the cluster represent? Reassign meaningful names to the clusters (instead of generic names such as cluster_0, cluster_1, etc.) based on the characteristics of the segmentation (Offer your own analysis of what you think of clusters based on those numbers). Note that while there is no set way to name each cluster, you will need to provide justifications for the choices.

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