1. To segment a customer into a small number of groups for additional analysis and marketing activities, which methodology would you use?

Classification

Clustering

Regression

Association

2. There are many types of clustering available to use. Which of the following is not a type of clustering?

Partitional Clustering

Hierarchical Clustering

Complete Clustering

Ensemble method

3. The K-means clustering algorithm performs well when the dataset contains a large number of noisy data and different sizes and densities.

True

False

4. Which clustering algorithms works well for a dataset that contains noise, different shapes, and sizes?

K-means

DBSCAN

Hierarchical clustering

5. Which of the following situation is NOT a limitation of K-Means?

Dataset with different sizes

Dataset with different densities

Dataset with non-globular shapes

Dataset with fewer noises and outliers

6. What are measure that are applied to judge various aspects of cluster validity?

External index, 10-fold cross validation

Internal index, entropy, Gini index

External index, internal index, relative index

7. Internal measures - cohesion is measure by the between cluster sum of squared error.

True

False

8. Which of the following is not a benefit of using clustering?

Clustering can be used for outlier detection as part of substantive testing.

Clustering can be used to categorize exceptions.

Clustering can be used to identify peer issuers.

Clustering is behavior based task that can help remove auditor bias.