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Performing Cluster Analysis

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You'll use the mall customers dataset, which contains the following columns:

You should also follow these steps before clustering:

  1. Load the data: you'll use pandas to load the CSV file;
  2. Select relevant features: you'll focus on 'Annual Income (k$)' and 'Spending Score (1-100)' columns;
  3. Data scaling (important for DBSCAN): since DBSCAN uses distance calculations, it's crucial to scale features to have similar ranges. You can use StandardScaler for this purpose.

Interpretation

The code creates 5 clusters in this case. It's important to analyze the resulting clusters to gain insights into customer segmentation. For example, you might find clusters representing:

  • High-income, high-spending customers;
  • High-income, low-spending customers;
  • Low-income, high-spending customers;
  • Low-income, low-spending customers;
  • Middle-income, middle-spending customers.

Concluding Remarks

question mark

Which approach correctly prepares the mall customers dataset for DBSCAN clustering on spending patterns?

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