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May 25'23
Exercise
Determine which of the following statements is NOT true about clustering methods.
- Clustering is used to discover structure within a data set.
- Clustering is used to find homogeneous subgroups among the observations within a data set.
- Clustering is an unsupervised learning method.
- Clustering is used to reduce the dimensionality of a dataset while retaining explanation for a good fraction of the variance.
- In K-means clustering, it is necessary to pre-specify the number of clusters.
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
May 26'23
Key: D
Item D is a statement about principal components analysis, not clustering.
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.