Question

4. How might clustering be used to explain customers that owe us money (accounts receivable)?

Answer 1

Answer: How owe might clustering be ased to explain customers that us money (accounts receivable)? Ans: One from accounts of clustering receivable is that is already used for the aging of accounts. The aging groups accounts by how older accounts receivable is, with the expectation that older accounts are less likely to be collected. Aging relies on only one dimension time and focuses on the transaction, not the customer. clustoring may be useful in determining whether customers from natural groupings relative to their ability to pay their bills, based on a correlated attributes, such as location, size and volume of Orders. If we have good data that shows which customers have had accounts written. off, we may expand this model to predict the likelihood of non payment by using a classification model.

conclusively determining Accounts receivable the allowance for aging is useful in doubtful accounts.
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