Data Mining Review Questions - XLMiner Labs - Cluster Analysis1. Marketing to Frequent Flyers. The file EastWestAirlinesCluster.xls contains information on 4000 passengers who belong to the airline's frequent flier program. For each passenger, the data include information on the passenger's mileage history, and on different ways that mileage was accrued or spent in the last year. The goal is try to identify clusters of passengers who have similar characteristics, for the purpose of targeting different segments for different types of mileage offers. So I'll ask you one more time, "What's in your wallet?" (textbook reference - 15.4).
a. Perform k-means clustering with the number of clusters set to five (5). Be sure to Normalize the Input Data.
b. Which cluster(s) are the best formed and why? Which cluster(s) are the poorest formed and why?
c. Which two clusters have the greatest distance between them?
d. What cluster would you target for an offer? Why did you select that cluster?
(Hint: Review the coordinates on the KMC_Output1 tab)
e. What offer(s) would you send to the customers in the cluster identified in Part d? Why?
Attachment:- Cluster.xls