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Cluster Analysis
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Transcript of Cluster Analysis
Cluster Analysis
Group 13Himansh Rakheja - 119278051
Abhishek Verma - 119278098Aniket Jain - 119278125
Maheshwar Pathania - 119278137
04/07/2023 SJMSOM, IIT Bombay 2
IntroductionWhat is a Cluster?
Groups relatively homogeneous within themselves and heterogeneous between each other
Why Cluster Analysis?Market SegmentationUnderstanding buyers behaviorReducing data
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Steps to do a cluster analysis1. Indentify cluster variables2. Standardize variables, if required3. Choose how to measure distance4. Choose a clustering algorithm5. Determine the number of clusters6. Validate
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Distance MeasuresEuclidean distanceSquared EuclideanCosine
Why Standardize?
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CLUSTERING METHODS
Hierarchical
Agglomerative Divisive
Non Hierarchical
K-means
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Plots used in Cluster AnalysisIcicle plot
Source: http://www.norusis.com/pdf/SPC_v13.pdf
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Agglomerative plot
Source: http://www.norusis.com/pdf/SPC_v13.pdf
04/07/2023 SJMSOM, IIT Bombay 8
Scree Plot
Source: http://www.janda.org/workshop/factor%20analysis/SPSS%20run/SPSS08.htm
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Dendogram
Source: http://www.norusis.com/pdf/SPC_v13.pdf
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Thank you!