It is known that data mining algorithms are not perfect and they can fail under certain conditions. K-Means is an example of that triviality but there is a good alternative, K-Medoids. In a previous post, "Machine Learning: A Brief Breakdown" we already mentioned that K-Means is the cluster analysis algorithm par excellence and it is one of the most important data mining and machine learning techniques; even psanchezcri used it to analyze the direction of a financial time series, in his post "Returns clustering with K-means algorithm". Nevertheless, it's difficult to find discussions about the algorithm's unexpected results in certain cases. The algorithm documentation is too broad in Internet, so the main objective of this post is to focus on showing a financial example of the problem.

Humanity is in a precarious state and never more than a hair's breadth from being wiped out, if the hordes of Doomsday fanatics are to be believed. But while many scenarios may seem in the realm of fantasy, a new report suggests there are a number of global catastrophic risks which we could do with preparing for much better. According to the report, top of the list for 2016 are climate change-related catastrophes, natural pandemics - such as bird flu - and nuclear war. Countdown to extinction: A new report detailing the global catastrophic risks facing humanity lists nuclear war (stock image) and climate change among the top threats that could wipe out up one tenth of the world's population. Other risks which make the list for 2016 include man-made virus, failure of geo-engineering - such as adding iron to oceans to absorb atmospheric carbon - as well as the threat of catastrophic disruption from artificial intelligence. The report suggests that a person may be five times as likely to be wiped out in an extinction event as a car crash.

The worst thing that can happen in Settlers of Catan isn't ending up with settlements that don't yield any resources, it's when someone accidentally bumps the board sending roads and cities flying in all directions. So maybe playing Catan is yet another thing we should leave to the robots? Students from the Computer Science and Mathematics departments of the OTH Regensburg Technical University of Applied Sciences in Germany are working on programming a KUKA industrial robotic arm to play Settlers of Catan. Using cameras above an LCD game board that displays virtual versions of the game's iconic hexagonal pieces, the robot is able to play and interact with human opponents, presumably putting up a good fight. But it's also able to precisely place the game's settlement, city, and road pieces, without the risk of knocking anything out of alignment in the process.

New supersharp photos of Mars show Europe's long-lost Beagle 2 lander, ancient Red Planet lake beds and snaking rover tracks in unprecedented detail. Scientists "stacked and matched" photos captured over the years by NASA's eagle-eyed Mars Reconnaissance Orbiter (MRO) using new machine-vision methods, creating images in which features just 2 inches wide can be seen. This resolution is five times greater than MRO or any other instrument orbiting Earth or Mars had been able to achieve, researchers said. Further use of this technique could help space agencies select safe landing sites for future Mars missions, search for pieces of other lost Red Planet hardware and perform a variety of other science work, they added. "We now have the equivalent of drone-eye vision anywhere on the surface of Mars where there are enough clear repeat pictures," study co-author Jan-Peter Muller, of University College London's Mullard Space Science Laboratory, said in a statement.

Oussama Khatib held his breath as he swam through the wreck of La Lune, 100 meters below the Mediterranean. The flagship of King Louis XIV sank here in 1664, 20 miles off the southern coast of France, and no human had touched the ruins – or the countless treasures and artifacts the ship once carried – in the centuries since. With guidance from a team of skilled deep-sea archaeologists who had studied the site, Khatib, a professor of computer science at Stanford, spotted a grapefruit-size vase. He hovered precisely over the vase, reached out, felt its contours and weight, and stuck a finger inside to get a good grip. He swam over to a recovery basket, gently laid down the vase and shut the lid.

PA's automation experts, Helena Moren and Simon Andersson, have had an article published in NyTeknik about the rise of smart machines and how Swedish companies are lagging behind that trend. The article outlines how robots and artificial intelligence will have a significant impact on business and finance, with the market for smart machines expected to be worth approximately SEK 130 billion by 2020. While predicting robots' impact on the labour market is more difficult, there is a high probability that the robots will bring new, high-end jobs and greater freedom for mankind. Helena and Simon explain that robotisation can release a comprehensive range of resources and can be used to increase efficiency and productivity. But, as revealed in a report presented at the Davos summit in January, Swedish companies are falling behind in this digitisation, mainly because they are not efficiently resourced to make these developments.

The tech world's spotlight turned to chatbots after Facebook announced the launch of their own bot store on the Messenger platform at the F8 conference in April 2016. A few weeks later, the news has been covered extensively. It has also generated a lot of criticism. The two main arguments against are that this is nothing substantially new and that chatbots give only approximative answers. These hasty criticisms are due to the fact that most people haven't quite grasped the real concept behind the Messenger bot store.

Lego's decision to reject Chinese artist Ai Weiwei's request for a bulk order of its bricks last year was a "mistake", the toy firm has admitted. Vice-Chairman Kirk Kristiansen told The Wall Street Journal an employee had misinterpreted the company's policy on political neutrality. In October, Ai said his request was declined because Lego considered his planned exhibition to be too political. The artist is known for criticism of the Chinese government. "It was an internal mistake," Mr Kirk Kristiansen said.

A couple have been told to restrain their cat or face having their mail deliveries suspended. Matthew Sampson was notified by Royal Mail last week of a "potential hazard" at his home in South Gloucestershire which was "affecting deliveries". According to Royal Mail, Bella the cat is a "threat" to staff and has been putting "fingers at risk of injury". But owner Matthew Sampson, said he was "shocked" by the notice as he has "never seen her get aggressive". In the letter, Royal Mail states it has been "experiencing difficulties in delivering mail" to Mr Sampson's address in Patchway "because of the actions of a cat". It said the couple's postman had reported that when he pushes mail through their letterbox their cat "snatches the mail and put his fingers at risk of injury".

The rise of robots and deadly viruses are among the threats that could wipe out swathes of humanity - but governments are failing to prepare properly for them, a new report warns. Catastrophic climate change, nuclear war and natural disasters such as super volcanoes and asteroids could also pose a deadly risk to mankind, researchers said. It may sound like the stuff of sci-fi films, but experts said these apocalyptic threats are more likely than many realise. The report Global Catastrophic Risks, compiled by a team from Oxford University, the Global Challenges Foundation and the Global Priorities Project, ranks dangers that could wipe out 10% or more of the human population. It warns that while most generations never experience a catastrophe, they are far from fanciful, as the bouts of plague and the 1918 Spanish flu that wiped out millions illustrated.