import numpy as np

import matplotlib.pyplot as plt

import pandas as pd
dataset = pd.read_csv('Mall_Customers.csv')
dataset

CustomerID Gender Age Annual Income (k$) Spending Score (1-100)

0 1 Male 19 15 39

1 2 Male 21 15 81

2 3 Female 20 16 6

3 4 Female 23 16 77

4 5 Female 31 17 40

... ... ... ... ... ...

195 196 Female 35 120 79

196 197 Female 45 126 28

197 198 Male 32 126 74

198 199 Male 32 137 18

199 200 Male 30 137 83

200 rows × 5 columns

x = dataset.iloc[:, [3, 4]].values

#finding optimal number of clusters using the elbow method

from sklearn.cluster import KMeans
wcss_list= [] #Initializing the list for the values of WCSS

#Using for loop for iterations from 1 to 10.

for i in range(1, 11):
kmeans = KMeans(n_clusters=i, init='k-means++', random_state= 42)
kmeans.fit(x)
wcss_list.append(kmeans.inertia_)
plt.plot(range(1, 11), wcss_list)
plt.title('The Elobw Method Graph')
plt.xlabel('Number of clusters(k)')
plt.ylabel('wcss_list')
plt.show()
 /usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: Future
warnings.warn(
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: Future
warnings.warn(
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: Future
warnings.warn(
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: Future
warnings.warn(
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: Future
warnings.warn(
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: Future
warnings.warn(
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870:
#training the K-means model on a dataset Future
kmeans warnings.warn(
= KMeans(n_clusters=5, init='k-means++', random_state= 42)
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870:
y_predict= kmeans.fit_predict(x) Future
warnings.warn(
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: Future
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: FutureWarning: The default value of `n_init` wil
warnings.warn(
warnings.warn(
/usr/local/lib/python3.10/dist-packages/sklearn/cluster/_kmeans.py:870: Future
warnings.warn(
#visulaizing the clusters
plt.scatter(x[y_predict == 0, 0], x[y_predict == 0, 1], s = 100, c = 'blue', label = 'Cluster 1') #for first cluster
plt.scatter(x[y_predict == 1, 0], x[y_predict == 1, 1], s = 100, c = 'green', label = 'Cluster 2') #for second cluster
plt.scatter(x[y_predict== 2, 0], x[y_predict == 2, 1], s = 100, c = 'red', label = 'Cluster 3') #for third cluster
plt.scatter(x[y_predict == 3, 0], x[y_predict == 3, 1], s = 100, c = 'cyan', label = 'Cluster 4') #for fourth cluster
plt.scatter(x[y_predict == 4, 0], x[y_predict == 4, 1], s = 100, c = 'magenta', label = 'Cluster 5') #for fifth cluster
plt.scatter(kmeans.cluster_centers_[:, 0], kmeans.cluster_centers_[:, 1], s = 300, c = 'yellow', label = 'Centroid')
plt.title('Clusters of customers')
plt.xlabel('Annual Income (k$)')
plt.ylabel('Spending Score (1-100)')
plt.legend()
plt.show()

Conclusion:
Cluster 5 has the highest income and highest spending score so it can be categorized as the most profitable.

Post Lab Questions:

Q1. State applications of k-means clustering algorithm.

1. Customer Segmentation:

Utilized in marketing to group customers with similar behaviors or preferences, aiding in targeted advertising and personalized
services.

2. Image Compression:

Applied in image processing to reduce storage space by clustering similar colors, effectively compressing the image without
significant loss of quality.

3. Document Clustering:

Employed in natural language processing to cluster and organize text data, facilitating tasks such as document categorization and
topic modeling.
4. Anomaly Detection:

Used for identifying outliers or anomalies in datasets, where data points that do not conform to the general patterns can be
considered as potential anomalies.

5. Network Security:

Applied in cybersecurity to analyze network traffic and detect unusual patterns or behaviors that may indicate potential security
threats or attacks.