Using K-means for Predictive Analytics

K-means is a clustering algorithm that tries to cluster related data points together. However, we should know its working principle and mathematical operations.

How K-means Works

Suppose we have n data points, xi, i = 1...n, that need to be partitioned into k clusters. Now that the target here is to assign a cluster to each data point, K-means aims to find the positions, μi, i=1...k, of the clusters that minimize the distance from the data points to the cluster. Mathematically, the K-means algorithm tries to achieve the goal by solving an equation that is an optimization problem:

How K-means Works

In the previous equation, ci

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