Association rules and clustering
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Measures
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Worked bread-and-milk example
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Transactions -> 5 total; bread appears in 4; milk appears in 4; both appear in 3.
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Support -> .
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Confidence -> in either direction.
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Baseline frequency of consequent -> .
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Lift -> .
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Confidence of alone does not show positive association against the baseline.
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Use rules to suggest patterns; placement or promotion needs business context and testing.
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Task
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Clustering -> groups observations by similarity without pre-existing class labels or target categories.
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K-means
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Practicum interpretation
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Features -> purchase frequency and profit per sale; used to inform stock decisions.
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Low frequency, high margin -> may call for a different stock policy.
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High frequency, near-zero margin -> may call for another policy.
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Caution -> cluster averages describe profiles; they do not justify the same action for every member.
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11-point example centroids -> approximately , , and for low, medium, and high profit.
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Coordinate meaning -> first is purchase frequency; second is profit per sale.
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feature scales differ greatly and strongly affect Euclidean distance.
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