Assignment Task
Problem 1: Clustering
A leading bank wants to develop a customer segmentation to give promotional offers to its customers. They collected a sample that summarizes the activities of users during the past few months. You are given the task to identify the segments based on credit card usage.
1.1 Read the data, do the necessary initial steps, and exploratory data analysis (Univariate, Bi-variate, and multivariate analysis).
1.2 Do you think scaling is necessary for clustering in this case? Justify
1.3 Apply hierarchical clustering to scaled data. Identify the number of optimum clusters using Dendrogram and briefly describe them
1.4 Apply K-Means clustering on scaled data and determine optimum clusters. Apply elbow curve and silhouette score. Explain the results properly. Interpret and write inferences on the finalized clusters.
1.5 Describe cluster profiles for the clusters defined. Recommend different promotional strategies for different clusters.
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