Question

Answer the question below:

· Explain what is K-mean Algorithm?
· Explain what is KPI, design of experiments and 80/20 rule?

Answer 1

1)

Kmeans algorithm is an iterative algorithm that attempts to parcel the dataset into Kpre-characterized distinct non-covering subgroups (clusters) where every data point has a place with just one group. It attempts to make the intra-bunch information focuses as comparable as could reasonably be expected while likewise keeping the groups as various (far) as could reasonably be expected. It allocates data points to a group with the end goal that the total of the squared distance between the data point and the cluster’s centroid (arithmetic mean of all the data points that have a place with that group) is at the base. The less variety we have inside groups, the more homogeneous (comparative) the data points are inside a similar bunch or cluster.

The way kmeans algorithm works is as per the following:

• Indicate number of clusters K.
• Instate centroids by first rearranging the dataset and afterward arbitrarily choosing K data points for the centroids without substitution.
• Continue repeating until there is no change to the centroids. That is, task of data points to clusters isn't evolving.
• Figure the aggregate of the squared distance between data points and all centroids.
• Relegate every data point the nearest cluster (centroid).
• Figure the centroids for the cluster by taking the average of the all data points that have a place with each group.

2)

KPI represents Key Performance Indicator; it is a metric that comprises of any blend of spreadsheets, reports or diagrams about business measure

Design of experiments is the underlying process used to part data, sample and set up of a data for statistical analysis.

80/20 rule standards implies that 80% of salary originates from 20% of your customers