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Project overview
In this project, you’ll take on the role of a data scientist at a credit card company that wants to segment its customers into groups to tailor its business strategies. You’ll use Python and popular data science libraries to prepare and cluster the customer data using the K-means algorithm.
By analyzing the characteristics of each customer segment, you’ll gain experience in translating data insights into actionable business recommendations. This project will strengthen your skills in data preparation, unsupervised machine learning, and applying data science to solve real-world business problems.
Objective: Use K-means clustering to segment credit card customers into groups with distinct characteristics in order to tailor business strategies to each segment.
Key skill required
To complete this project, it's recommended to build these foundational skills in Python
- Understanding key concepts of unsupervised machine learning
- Implementing the k-means clustering algorithm in Python
- Working with Python data science libraries including NumPy, pandas, and scikit-learn
- Preparing and standardizing data for cluster analysis
Projects steps
Step 1: Introduction
Step 2: Feature Engineering
Step 3: Feature Engineering - Part 2
Step 4: Scaling the Data
Step 5: Choosing K
Step 6: Analyzing Results
Step 7: Next Steps
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