KNN (K-Nearest Neighbors)

Category: science

A classification algorithm that predicts an outcome based on the labels of the "k" most similar data points.

It’s the "crowd behavior" model. If you want to know if a client will buy a policy, look at their 5 closest neighbors. If 4 of them bought it, the model predicts "Yes." It is incredibly simple but very effective for recommendation engines.

Common Examples

• The recommendation engine uses KNN to suggest potential cross-sell products based on the purchasing behavior of similar client profiles.
• KNN is highly sensitive to the scaling of your data, making feature normalization a prerequisite for effective implementation.