Cluster Analysis.

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Presentation transcript:

Cluster Analysis

Purpose clustering analysis is a process where a set of objects is partitioned into several clusters All members in one cluster are similar to each other and different from the members of other clusters, according to some similarity metric

Cluster Analysis Y (Age) X (Income) Cluster Customer (Object) Variables

Dissimilarity (Distance) Measure

Dissimilarity (Distance) Measure

Dissimilarity (Distance) Measure

Categorization of Clustering Methods Exclusive vs. Non-Exclusive (Overlapping) Hierarchical Methods vs. Partitioning Methods Hierarchical Methods Single Link Method Complete Link Method Partitioning Methods Kohonen Self-Organizing Maps (SOM) K-Means Methods K-Medoids Methods (PAM, CLARA, CLARANS) Demographic Methods …

Hierarchical Methods Dissimilarity Matrix (55)