Unsupervised Learning - Kmeans Week 11 Challenge

1.How does similarity is calculated if data is categorical in nature

For categorical data it is better to use the hamming distance. But K-means work only on Euclidean distance.

So, it is better to classify the categorical data using one hot encoding and removing one extra column of each feature (Dummy Variable). Thus all the columns are binary in nature which gives the same sense as of hamming distance.