Cluster Analysis: Clustering Methods

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Definition
The concept cluster analysis includes a number algorithms and methods for grouping objects of similar kind into respective categories. From a general question it could face many areas of inquiry and how to organize observed data into meaningful structures. (TIBCO, 2018) . In other words, cluster analysis is an organizational method, which helps to perform and sort a pattern in between the data. It also allows you to find the connection between two objects distinct from each other or their same characteristics.

Approaches to cluster analysis
Analysis cluster is divided in the following methods in research market: hierarchical methods, partitioning methods (as known as k-means), and two-step clustering.
Hierarchical Clustering …show more content…

Centroid Method: Calculates the distance between two clusters as the total of distances between their means for all of the variables. (J. Norušis, 2012)
e. Ward´s method: Analyze the variances of data points in order to determine the distance between clusters. For each cluster, the means for all variables are calculate, As well as the squared Euclidean distance to the cluster means. (J. Norušis, 2012)

b) Divisive clustering: starts with all data in one cluster and ends up with each in individual clusters. Moreover, this could be also proved with another method, if does not satisfies the model. (J. Norušis, 2012)
Hierarchical Clustering Analysis Statistics

a) Agglomeration Schedule: Displays the cases or clusters combined at some stage, in which the distances between the data or clusters are combined, and the last cluster level at which a case (or variable) joined the cluster. (IBM Knowledge Center)

b) Proximity matrix: Show us the distances or similarities between the items.

c) Cluster Membership: Displays the cluster to which each data is assigned at one or more stages in the combination of clusters. This is recommendable between minimums of 2 and maximum of 6 clusters. (IBM Knowledge Center)
Hierarchichal Cluster Analysis

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