Answers

Here are the answers to the previous questions:

1. It is the average value of the group.
2. Its data points are compact and close to the group's centroids. They have a small standard deviation.
3. An outlier has different behavior compared with the rest of the groups. It could indicate fraud or a system performance problem that could lead to a crisis in the near future.
4. The K-means elbow chart displays the optimal number of groups. Choose the number where the curve starts to flatten.
5. Do K-means classification, then run the pivot chart analysis per group to review the segmentation of the variables' values.