A large retail chain has asked their analytics team to complete a study on their customers' purchasing patterns.
The analyst assigned to the study has decided to draw further insight by grouping customers based on their purchasing habits.This clustering approach is an example of:
Correct Answer: C
Unsupervised learning is a category of data analysis techniques that does not require labeled data or predefined outcomes. Unsupervised learning aims to discover patterns, structures, or relationships in the data without any guidance or supervision. Clustering is a common example of unsupervised learning, where the data is grouped into clusters based on some similarity or distance measure. Clustering can help reveal customer segments, market trends, or product preferences, among other insights.
References:Guide to Business Data Analytics, page 39; Introduction to Business Data Analytics: A Practitioner View, page 10.