Question
A retailer wants to segment its customers to optimize
targeted marketing campaigns. Which of the following approaches would be most effective for customer segmentation based on purchasing patterns?Solution
K-means clustering is well-suited for customer segmentation as it groups customers based on similarities in purchasing behaviors, allowing retailers to identify clusters of customers with similar shopping patterns. By analyzing customer purchasing data, K-means assigns each customer to the nearest cluster center, effectively organizing the customer base into distinct segments. This method is ideal for developing targeted marketing strategies, as each segment represents a specific customer type that can be addressed with tailored promotions. K-means is computationally efficient and works well with large datasets, making it a popular choice for customer segmentation in retail. The other options are incorrect because: • Linear Regression is used for continuous prediction, not clustering. • Principal Component Analysis (PCA) reduces dimensions but doesn’t segment data into groups. • Logistic Regression is a classification tool, not suited for unsupervised segmentation. • Naive Bayes Classifier is a supervised technique that classifies data based on probability, not clustering.
A woman invests Rs. 2000 at the start of each year at 5% compound interest per annum. How much will her investments be at the end of the 2nd year?
If the ratio of the sum invested and simple interest received after 1 year is 25:11 respectively, then find the rate of interest.
Raman paid Rs.9,600 in interest on a loan she obtained 5 years ago with a simple interest rate of 16%. What was the amount of the loan she had taken?
Atul has Rs.350 with him. He invested 20% of the amount at 5% p.a. for 8 years and rest at 10% p.a. for 5 years. Find the sum of simple interests receiv...
A person deposited Rs. 30,000 in a savings account that earned simple interest at a rate of 'x%' per annum. After 2 years, the total amount in the accou...
Simple interest received at the rate of 12% p.a. for 6 years on a principal amount of Rs. 8000 is twice of the simple interest received at 10% p.a. for ...
The difference between the compound interest, compounded annually and simple interest on Rs. ‘P’ at the rate of 20% p.a. for 2 years, is Rs....
A man, after making the first investment, earned a total interest of Rs. 1,09,200 at the end of 3 years. He invested a certain amount at an annual compo...
Rs. (n + 400) invested on simple interest amounts to Rs. 3,200 and Rs. 3,800 in 4 years and 6 years, respectively. Find the value of 'n'.
Rs. ‘P’ was invested in scheme A at the rate of 30% per annum on compound interest for 3 years. Rs. (P+9875) was invested in scheme B at the rate of...