Exercise

K-means clustering

A very commonly used clustering algorithm is K-means clustering. For fraud detection, K-means clustering is straightforward to implement and relatively powerful in predicting suspicious cases. It is a good algorithm to start with when working on fraud detection problems. However, fraud data is oftentimes very large, especially when you are working with transaction data. MiniBatch K-means is an efficient way to implement K-means on a large dataset, which you will use in this exercise.

The scaled data from the previous exercise, X_scaled is available. Let's give it a try.

Instructions

100 XP

Import MiniBatchKMeans from sklearn.
Initialize the minibatch kmeans model with 8 clusters.
Fit the model to your scaled data.