What does "Clustering" mean?

Clustering is a term used to describe a machine learning technique used to group similar data points together based on their features. Unlike classification, which assigns predefined labels, clustering discovers natural groupings in the data without prior labels.

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Use Cases

Customer Segmentation:

Grouping customers based on purchasing behavior for targeted marketing.

Image Segmentation:

Dividing an image into regions with similar characteristics.

Anomaly Detection:

Identifying unusual patterns in data, such as fraud detection.

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Importance

Pattern Discovery:

Helps uncover hidden patterns and relationships in data.

Data Simplification:

Reduces the complexity of data by summarizing it into clusters.

Insight Generation:

Provides insights that can inform business decisions and strategies.

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Analogies

Clustering is like organizing a library without a catalog. You sort books into groups based on their topics and similarities, even though you don’t have predefined labels for each group.

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