This is the third project in Udacity's Machine Learning Nanodegree based on Dimensionality Reduction and Unsupervised Learning.
Problem Statement:
A wholesale distributor recently tested a change to their delivery method for some customers, by moving from a morning delivery service five days a week to a cheaper evening delivery service three days a week.Initial testing did not discover any significant unsatisfactory results, so they implemented the cheaper option for all customers. Almost immediately, the distributor began getting complaints about the delivery service change and customers were canceling deliveries — losing the distributor more money than what was being saved.
You’ve been hired by the wholesale distributor to find what types of customers they have to help them make better, more informed business decisions in the future.
Your task is to use unsupervised learning techniques to see if any similarities exist between customers, and how to best segment customers into distinct categories.