An insurance company would like to develop a range of insurance products for different types...

K-means clustering is a technique that partitions a set of data points into a predefined number of clusters, based on their similarity or distance. This technique can be useful to divide the customer base into groups that have similar characteristics, preferences, or behaviors, and then design insurance products that cater to each group’s needs and expectations. K-means clustering can also help identify outliers or anomalies in the customer data that may require further investigation or attention.

References: Guide to Business Data Analytics, page 58-59; CBDA Exam Blueprint, page 7; [Introduction to Business Data Analytics: A Practitioner View], page 17.