Customer segmentation is an example of _________Review LaterClusteringRegressionClassificationAll of the above
Question
Customer segmentation is an example of _________
Review Later
- Clustering
- Regression
- Classification
- All of the above
Solution
Answering the Question
Customer segmentation is an example of Clustering.
Clustering algorithms are used in data analysis to group similar data points together based on specific characteristics. In the case of customer segmentation, businesses analyze various attributes like purchasing behavior, demographics, or preferences to categorize their customers into distinct segments.
While regression primarily focuses on predicting continuous outcomes and classification deals with assigning predefined labels to data points, clustering refers to unsupervised learning where the goal is to find inherent groupings within the data without labeled outcomes.
In summary, customer segmentation falls under the category of clustering as it involves grouping customers based on similarities rather than predicting outcomes or making classifications from predefined categories.
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