How would you use unsupervised learning to understand customer segments in a large dataset?
Instruction: Outline the process, including data preparation, algorithm selection, and interpretation of results.
Context: This question explores the candidate's ability to apply unsupervised learning techniques for customer segmentation, emphasizing methodology and insights generation.
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I would start by clarifying what the segments are meant to support, because clustering without a use case usually produces groups that look mathematically neat but are not useful to the business...