Interpret clustering procedures outputs.

Free CAS MAS-II (Modern Actuarial Statistics II) lesson in Statistical Learning. 12 min read, ~1,781 words.

K-means output = K centroids (cluster means on each feature), cluster assignments, and within-cluster sum of squares. Total decreases monotonically in K. Hierarchical output = a dendrogram. Y-axis is fusion height (linkage distance at which clusters merged). Cut horizontally at height to extract clusters. Choose K by the elbow in...

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