A telecommunications company wants to identify customers who are likely to unsubscribe to the telephone service. The

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A telecommunications company wants to identify customers who are likely to unsubscribe to the telephone service. The company collects the following information from 100 customers: customer ID (ID), age (Age), annual income (Income), monthly usage (Usage, in minutes), tenure (Tenure, in months), and whether the customer has unsubscribed to the telephone service (Unsubscribe). A portion of the data set is shown in the accompanying table.


a. Perform k-means clustering to group the 100 customers into four clusters based on age, income, monthly usage, and tenure. Describe the characteristics of each cluster. 

b. Compute the percent of customers that have unsubscribed to the telephone service from each cluster. Which cluster has the highest percent of customers who have unsubscribed to the telephone service?

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Business Analytics Communicating With Numbers

ISBN: 9781260785005

1st Edition

Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen

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