Exam PA · Data Transformations and Unsupervised Learning Techniques · Free Lesson

Apply K-means and hierarchical clustering to transform data.

Free SOA Exam PA (Predictive Analytics) lesson in Data Transformations and Unsupervised Learning Techniques. 12 min read, ~1,855 words.

Why cluster at all. Clustering collapses many variables into a single group label. That label is a new feature you feed into a downstream model. It reveals hidden structure (customer segments, geographic zones) and reduces dimensionality without a response variable to guide it. That last point defines it as unsupervised.

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