Actuarial Notes

CAS Exam MAS-II Fall 2019, Question 40

Study guide: Exam MAS-II

You are given three statements about the k-means clustering algorithm.

I. The k-means clustering algorithm requires that observations be standardized to have mean zero and standard deviation one. II. The k-means clustering algorithm seeks to find subgroups of homogeneous observations. III. The k-means clustering algorithm looks for a low-dimensional representation of the observations that explains a significant amount of the variance.

Determine which of the statements I, II or III are true.

  • A) I only
  • B) II only
  • C) III only
  • D) I, II, and III
  • E) The answer is not given by (A), (B), (C), or (D)

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