CLUSTER ANALYSIS

What is Cluster Analysis?

 Group of Multivariate techniques

 Groupingrecords based upon attributes
that makes them similar
 Cluster analysis is also called
classification analysis.
Cluster Analysis
 Example
 let’ssay we are looking at countries and want to
group them into clusters based on characteristics
such as division of labor, militaries, technology, or
educated population. We would find that Britain,
Japan, France, Germany, and the United States
have similar characteristics and would be
clustered together. Uganda, Nicaragua, and
Pakistan would be also be grouped together in a
different cluster because they share a different set
of characteristics.
What is the purpose of Cluster
Analysis in Data warehousing?
It analyzes all the data that is present in the
data warehouse and compare the cluster
with the cluster that is already running. It
performs the task of assigning some set of
objects into the groups which are also
known as clusters.
Types Of Cluster Analysis:
There are several different types of cluster
analysis. The two most commonly used are
 K-mean Clustering

 Hierarchical Clustering
K-means Clustering
Away of partitioning data into
meaningful categories
 Minimizedistance between each
observation and the center of its
associated cluster
 Each
cluster is categorized by its
mean or center point
Hierarchical Clustering
 In Hierarchical clustering, clusters have a
tree like structure or a parent child
relationship.
Roles Of Cluster Analysis

 Data Reduction

 Hypothesis Generation
 Applications
 It
is used to segment the market in
marketing
 Usedin social networking sites In making
new groups based on the users data
 Also
used in Biology to find the groups of
genes that have similar functions
 Used in information retrieval clustering is
also used in the world wide web that
consists of billions of web pages and the
result of a query can return thousands of
web pages. Clustering is used to group
these search results into small number of
clusters each of which captures a
particular aspect of the query
Objectives Of Cluster Analysis

 Taxonomy
 Data Simplification
 Relationship identification
Criticism Of Cluster Analysis

 Cluster Analysis will always create clusters

regardless of the actual existence of any
structure in the data.
 The cluster solution is not generalizable
because it is totally dependent upon the
variables used as the basis for the similarity
measures.