DA0-002 Data Analysis Practice Question
A retail company wants to identify customer segments based on purchase history and demographics. Which technique is most appropriate for this task?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
K-means clustering
K-means clustering is an unsupervised learning technique designed to segment data into groups based on similarity.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Linear regression
Why it's wrong here
Linear regression predicts a continuous target, not segments.
- ✓
K-means clustering
Why this is correct
K-means groups similar customers into clusters.
- ✗
Chi-square test
Why it's wrong here
Chi-square tests independence, not segmentation.
- ✗
Logistic regression
Why it's wrong here
Logistic regression is for classification, not unsupervised segmentation.
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