SOA Exam SRM Sample Question 60
Study guide: Exam SRM
Determine which of the following statements about selecting the optimal number of clusters in K-means clustering is/are true.
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I. K should be set equal to n, the number of observations.
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II. Choose K such that the total within-cluster variation is minimized.
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III. The determination of K is subjective and there does not exist one method to determine the optimal number of clusters.
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A) I only
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B) II only
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C) III only
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D) I, II and III
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E) The correct answer is not given by (A), (B), (C), or (D).
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