A company wants to segment its customers based on their purchasing behavior. They have a fair idea that there are around 5 distinct segments but want to confirm this. Which clustering algorithm might they start with?
- K-Means Clustering
- Agglomerative Hierarchical Clustering
- Mean-Shift Clustering
- Spectral Clustering
The company might start with K-Means Clustering to confirm their idea of five distinct segments. K-Means is often used for partitioning data into a pre-specified number of clusters and can be a good choice when you have a rough idea of the number of clusters.
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