Intermediate level · Module 4 of 6 · 15 guided hours
Unsupervised Learning
Find groups and structure in unlabelled data with clustering and dimensionality reduction, and turn them into useful insights.
Learning objectives
- Segment data with k-means and choose the number of clusters
- Use hierarchical clustering and DBSCAN where they fit better
- Reduce dimensions with PCA for visualisation and modelling
Topics
- k-means
- elbow and silhouette methods
- hierarchical clustering
- DBSCAN and outliers
- PCA
- interpreting and validating clusters
Lessons
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Lesson 1 k-Means Clustering
Group similar records with k-means and choose a sensible number of clusters.
k-meanscentroidinertia and elbowsilhouette score
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Lesson 2 Other Clustering Methods
Use hierarchical clustering and DBSCAN when k-means' assumptions do not fit, and detect outliers.
hierarchical clusteringdendrogramDBSCANnoise points
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Lesson 3 Dimensionality Reduction with PCA
Summarise many correlated features with principal component analysis for visualisation and modelling.
principal componentsexplained variance ratio2-D projectioninformation loss
Practical activity
Segment mobile-money agents by transaction behaviour, name and describe each segment and propose a different support action for each.
Expected outcomes
- Meaningful, interpretable segments
- Appropriate use of PCA
Assessment
Segmentation report marked on method, cluster validation and business interpretation.
Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.