SlideShare ist ein Scribd-Unternehmen logo
1 von 18
School of Data Science and Forecasting
MBA -Business Analytics
Presentation of Data Mining and Warehousing
On
Hierarchical Clustering Technique
Presented By:
Yashraj Nigam
Tanvi Bhave
Anjali Agarwal
Presented To:
Mr. Viney Sharma
CLUSTERING
Clustering is the task of dividing the population or data points into a number of groups such that data
points in the same groups are more similar to other data points in the same group and dissimilar to
the data points in other groups. It is basically a collection of objects on the basis of similarity and
dissimilarity between them. In simple words, the aim is to segregate groups with similar traits and
assign them into clusters.
Let’s understand this with an example. Suppose, you are the head of a rental store and wish to
understand preferences of your customers to scale up your business. Is it possible for you to look at
details of each customer and devise a unique business strategy for each one of them? Definitely not.
But, what you can do is to cluster all of your customers into say 10 groups based on their purchasing
habits and use a separate strategy for customers in each of these 10 groups. And this is what we call
clustering.
CLUSTERING APPLICATIONS
Clustering algorithms can be applied in many fields, for instance:
a) Marketing: finding groups of customers with similar behavior given a large
database of customer data containing their properties and past buying records
b) Biology: classification of plants and animals given their features
c) Libraries: book ordering
d) Insurance: identifying groups of motor insurance policy holders with a high
average claim cost; identifying frauds
e) City-planning: identifying groups of houses according to their house type,
value and geographical location
f) Earthquake studies: clustering observed earthquake epicenters to identify
dangerous zones
Types of Agglomerative Techniques
• Single-linkage Technique
• Complete-linkage Technique
• Average linkage Technique
Single-Linkage Technique
Minimum distance clustering is also called as single linkage hierarchical
clustering or nearest neighbor clustering. Distance between two clusters is
defined by the minimum distance between objects of the two clusters, as
shown below.
Complete-Linkage Technique
A connected component is a maximal set of connected points such that there
is a path connecting each pair. A clique is a set of points that are completely
linked with each other.
Pictorial Analysis
Implementing Hierarchical
Clustering on
WEKA
1. SELECT THE DATASET FOR CLUSTERING
2. CLICK ON CLUSTER TAB AND CHOOSE HIERARICHAL CLUSTERER
3. DOUBLE CLICK ON HIERARCHICAL CLUSTERER TO CHANGE
NUMBER OF CLUSTERS AND DISTANCE FUNCTION
4. CLICK ON START TO INITIATING CLUSTERING PROCESS
5. RIGHT CLICK ON RESULT AND SELECT VISUALIZE
CLUSTER ASSIGNMENT
6. INTERPRET THE RESULTS
Hierarchical Clustering Technique for Customer Segmentation

Weitere ähnliche Inhalte

Was ist angesagt?

Clustering Methods with R
Clustering Methods with RClustering Methods with R
Clustering Methods with RAkira Murakami
 
Clustering & classification
Clustering & classificationClustering & classification
Clustering & classificationJamshed Khan
 
Cluster analysis
Cluster analysisCluster analysis
Cluster analysissaba khan
 
Cluster analysis for market segmentation
Cluster analysis for market segmentationCluster analysis for market segmentation
Cluster analysis for market segmentationVishal Tandel
 
Cluster spss week7
Cluster spss week7Cluster spss week7
Cluster spss week7Birat Sharma
 
Cluster analysis
Cluster analysisCluster analysis
Cluster analysis緯鈞 沈
 
Cluster Analysis
Cluster AnalysisCluster Analysis
Cluster AnalysisSSA KPI
 
Cluster Analysis : Assignment & Update
Cluster Analysis : Assignment & UpdateCluster Analysis : Assignment & Update
Cluster Analysis : Assignment & UpdateBilly Yang
 
Spss tutorial-cluster-analysis
Spss tutorial-cluster-analysisSpss tutorial-cluster-analysis
Spss tutorial-cluster-analysisAnimesh Kumar
 
Statistical Clustering
Statistical ClusteringStatistical Clustering
Statistical Clusteringtim_hare
 
Basics of Clustering
Basics of ClusteringBasics of Clustering
Basics of ClusteringB. Nichols
 
Cluster analysis using spss
Cluster analysis using spssCluster analysis using spss
Cluster analysis using spssDr Nisha Arora
 
Introduction to Linear Discriminant Analysis
Introduction to Linear Discriminant AnalysisIntroduction to Linear Discriminant Analysis
Introduction to Linear Discriminant AnalysisJaclyn Kokx
 
Building a Classifier Employing Prism Algorithm with Fuzzy Logic
Building a Classifier Employing Prism Algorithm with Fuzzy LogicBuilding a Classifier Employing Prism Algorithm with Fuzzy Logic
Building a Classifier Employing Prism Algorithm with Fuzzy LogicIJDKP
 

Was ist angesagt? (20)

cluster analysis
cluster analysiscluster analysis
cluster analysis
 
Cluster analysis
Cluster analysisCluster analysis
Cluster analysis
 
Clustering Methods with R
Clustering Methods with RClustering Methods with R
Clustering Methods with R
 
Cluster analysis
Cluster analysisCluster analysis
Cluster analysis
 
Clustering & classification
Clustering & classificationClustering & classification
Clustering & classification
 
Cluster analysis
Cluster analysisCluster analysis
Cluster analysis
 
Cluster analysis for market segmentation
Cluster analysis for market segmentationCluster analysis for market segmentation
Cluster analysis for market segmentation
 
Cluster spss week7
Cluster spss week7Cluster spss week7
Cluster spss week7
 
Cluster analysis
Cluster analysisCluster analysis
Cluster analysis
 
Cluster Analysis
Cluster AnalysisCluster Analysis
Cluster Analysis
 
Cluster Analysis : Assignment & Update
Cluster Analysis : Assignment & UpdateCluster Analysis : Assignment & Update
Cluster Analysis : Assignment & Update
 
Clustering
ClusteringClustering
Clustering
 
Spss tutorial-cluster-analysis
Spss tutorial-cluster-analysisSpss tutorial-cluster-analysis
Spss tutorial-cluster-analysis
 
Statistical Clustering
Statistical ClusteringStatistical Clustering
Statistical Clustering
 
Basics of Clustering
Basics of ClusteringBasics of Clustering
Basics of Clustering
 
Cluster analysis using spss
Cluster analysis using spssCluster analysis using spss
Cluster analysis using spss
 
Malhotra20
Malhotra20Malhotra20
Malhotra20
 
Introduction to Linear Discriminant Analysis
Introduction to Linear Discriminant AnalysisIntroduction to Linear Discriminant Analysis
Introduction to Linear Discriminant Analysis
 
Dataa miining
Dataa miiningDataa miining
Dataa miining
 
Building a Classifier Employing Prism Algorithm with Fuzzy Logic
Building a Classifier Employing Prism Algorithm with Fuzzy LogicBuilding a Classifier Employing Prism Algorithm with Fuzzy Logic
Building a Classifier Employing Prism Algorithm with Fuzzy Logic
 

Ähnlich wie Hierarchical Clustering Technique for Customer Segmentation

EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONSEXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONSeditorijettcs
 
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONSEXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONSeditorijettcs
 
Cluster analysis in prespective to Marketing Research
Cluster analysis in prespective to Marketing ResearchCluster analysis in prespective to Marketing Research
Cluster analysis in prespective to Marketing ResearchSahil Kapoor
 
A simple intro to clustering basics.pdf
A simple intro to clustering basics.pdfA simple intro to clustering basics.pdf
A simple intro to clustering basics.pdfFERNWEH3
 
For iiii year students of cse ML-UNIT-V.pptx
For iiii year students of cse ML-UNIT-V.pptxFor iiii year students of cse ML-UNIT-V.pptx
For iiii year students of cse ML-UNIT-V.pptxSureshPolisetty2
 
pratik meshram-Unit 5 (contemporary mkt r sch)
pratik meshram-Unit 5 (contemporary mkt r sch)pratik meshram-Unit 5 (contemporary mkt r sch)
pratik meshram-Unit 5 (contemporary mkt r sch)Pratik Meshram
 
Business intelligence
Business intelligenceBusiness intelligence
Business intelligenceFaisal Aziz
 
Clustering - Machine Learning Techniques
Clustering - Machine Learning TechniquesClustering - Machine Learning Techniques
Clustering - Machine Learning TechniquesKush Kulshrestha
 
Dwdm ppt for the btech student contain basis
Dwdm ppt for the btech student contain basisDwdm ppt for the btech student contain basis
Dwdm ppt for the btech student contain basisnivatripathy93
 
DataMining Techniq
DataMining TechniqDataMining Techniq
DataMining TechniqRespa Peter
 
Cluster analysis (2).docx
Cluster analysis (2).docxCluster analysis (2).docx
Cluster analysis (2).docxYaseenRashid4
 
Classification on multi label dataset using rule mining technique
Classification on multi label dataset using rule mining techniqueClassification on multi label dataset using rule mining technique
Classification on multi label dataset using rule mining techniqueeSAT Publishing House
 
Classification and prediction in data mining
Classification and prediction in data miningClassification and prediction in data mining
Classification and prediction in data miningEr. Nawaraj Bhandari
 
Cluster Analysis in Data Science.pptx
Cluster Analysis in Data Science.pptxCluster Analysis in Data Science.pptx
Cluster Analysis in Data Science.pptxinfosec train
 
Cluster Analysis in Data Science.pptx
Cluster Analysis in Data Science.pptxCluster Analysis in Data Science.pptx
Cluster Analysis in Data Science.pptxInfosectrain3
 
Data and Information Visualization part 2.pptx
Data and Information Visualization part 2.pptxData and Information Visualization part 2.pptx
Data and Information Visualization part 2.pptxLamees EL- Ghazoly
 

Ähnlich wie Hierarchical Clustering Technique for Customer Segmentation (20)

EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONSEXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
 
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONSEXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
EXPLORING DATA MINING TECHNIQUES AND ITS APPLICATIONS
 
Cluster analysis in prespective to Marketing Research
Cluster analysis in prespective to Marketing ResearchCluster analysis in prespective to Marketing Research
Cluster analysis in prespective to Marketing Research
 
Clustering
ClusteringClustering
Clustering
 
A simple intro to clustering basics.pdf
A simple intro to clustering basics.pdfA simple intro to clustering basics.pdf
A simple intro to clustering basics.pdf
 
For iiii year students of cse ML-UNIT-V.pptx
For iiii year students of cse ML-UNIT-V.pptxFor iiii year students of cse ML-UNIT-V.pptx
For iiii year students of cse ML-UNIT-V.pptx
 
Chapter 1.pdf
Chapter 1.pdfChapter 1.pdf
Chapter 1.pdf
 
pratik meshram-Unit 5 (contemporary mkt r sch)
pratik meshram-Unit 5 (contemporary mkt r sch)pratik meshram-Unit 5 (contemporary mkt r sch)
pratik meshram-Unit 5 (contemporary mkt r sch)
 
Business intelligence
Business intelligenceBusiness intelligence
Business intelligence
 
Clustering - Machine Learning Techniques
Clustering - Machine Learning TechniquesClustering - Machine Learning Techniques
Clustering - Machine Learning Techniques
 
Data Mining
Data MiningData Mining
Data Mining
 
Dwdm ppt for the btech student contain basis
Dwdm ppt for the btech student contain basisDwdm ppt for the btech student contain basis
Dwdm ppt for the btech student contain basis
 
DataMining Techniq
DataMining TechniqDataMining Techniq
DataMining Techniq
 
Cluster analysis (2).docx
Cluster analysis (2).docxCluster analysis (2).docx
Cluster analysis (2).docx
 
Classification on multi label dataset using rule mining technique
Classification on multi label dataset using rule mining techniqueClassification on multi label dataset using rule mining technique
Classification on multi label dataset using rule mining technique
 
Data mining
Data miningData mining
Data mining
 
Classification and prediction in data mining
Classification and prediction in data miningClassification and prediction in data mining
Classification and prediction in data mining
 
Cluster Analysis in Data Science.pptx
Cluster Analysis in Data Science.pptxCluster Analysis in Data Science.pptx
Cluster Analysis in Data Science.pptx
 
Cluster Analysis in Data Science.pptx
Cluster Analysis in Data Science.pptxCluster Analysis in Data Science.pptx
Cluster Analysis in Data Science.pptx
 
Data and Information Visualization part 2.pptx
Data and Information Visualization part 2.pptxData and Information Visualization part 2.pptx
Data and Information Visualization part 2.pptx
 

Kürzlich hochgeladen

Ravak dropshipping via API with DroFx.pptx
Ravak dropshipping via API with DroFx.pptxRavak dropshipping via API with DroFx.pptx
Ravak dropshipping via API with DroFx.pptxolyaivanovalion
 
Carero dropshipping via API with DroFx.pptx
Carero dropshipping via API with DroFx.pptxCarero dropshipping via API with DroFx.pptx
Carero dropshipping via API with DroFx.pptxolyaivanovalion
 
BigBuy dropshipping via API with DroFx.pptx
BigBuy dropshipping via API with DroFx.pptxBigBuy dropshipping via API with DroFx.pptx
BigBuy dropshipping via API with DroFx.pptxolyaivanovalion
 
Unveiling Insights: The Role of a Data Analyst
Unveiling Insights: The Role of a Data AnalystUnveiling Insights: The Role of a Data Analyst
Unveiling Insights: The Role of a Data AnalystSamantha Rae Coolbeth
 
Customer Service Analytics - Make Sense of All Your Data.pptx
Customer Service Analytics - Make Sense of All Your Data.pptxCustomer Service Analytics - Make Sense of All Your Data.pptx
Customer Service Analytics - Make Sense of All Your Data.pptxEmmanuel Dauda
 
(PARI) Call Girls Wanowrie ( 7001035870 ) HI-Fi Pune Escorts Service
(PARI) Call Girls Wanowrie ( 7001035870 ) HI-Fi Pune Escorts Service(PARI) Call Girls Wanowrie ( 7001035870 ) HI-Fi Pune Escorts Service
(PARI) Call Girls Wanowrie ( 7001035870 ) HI-Fi Pune Escorts Serviceranjana rawat
 
VIP High Profile Call Girls Amravati Aarushi 8250192130 Independent Escort Se...
VIP High Profile Call Girls Amravati Aarushi 8250192130 Independent Escort Se...VIP High Profile Call Girls Amravati Aarushi 8250192130 Independent Escort Se...
VIP High Profile Call Girls Amravati Aarushi 8250192130 Independent Escort Se...Suhani Kapoor
 
Schema on read is obsolete. Welcome metaprogramming..pdf
Schema on read is obsolete. Welcome metaprogramming..pdfSchema on read is obsolete. Welcome metaprogramming..pdf
Schema on read is obsolete. Welcome metaprogramming..pdfLars Albertsson
 
Mature dropshipping via API with DroFx.pptx
Mature dropshipping via API with DroFx.pptxMature dropshipping via API with DroFx.pptx
Mature dropshipping via API with DroFx.pptxolyaivanovalion
 
dokumen.tips_chapter-4-transient-heat-conduction-mehmet-kanoglu.ppt
dokumen.tips_chapter-4-transient-heat-conduction-mehmet-kanoglu.pptdokumen.tips_chapter-4-transient-heat-conduction-mehmet-kanoglu.ppt
dokumen.tips_chapter-4-transient-heat-conduction-mehmet-kanoglu.pptSonatrach
 
Generative AI on Enterprise Cloud with NiFi and Milvus
Generative AI on Enterprise Cloud with NiFi and MilvusGenerative AI on Enterprise Cloud with NiFi and Milvus
Generative AI on Enterprise Cloud with NiFi and MilvusTimothy Spann
 
Week-01-2.ppt BBB human Computer interaction
Week-01-2.ppt BBB human Computer interactionWeek-01-2.ppt BBB human Computer interaction
Week-01-2.ppt BBB human Computer interactionfulawalesam
 
BabyOno dropshipping via API with DroFx.pptx
BabyOno dropshipping via API with DroFx.pptxBabyOno dropshipping via API with DroFx.pptx
BabyOno dropshipping via API with DroFx.pptxolyaivanovalion
 
Beautiful Sapna Vip Call Girls Hauz Khas 9711199012 Call /Whatsapps
Beautiful Sapna Vip  Call Girls Hauz Khas 9711199012 Call /WhatsappsBeautiful Sapna Vip  Call Girls Hauz Khas 9711199012 Call /Whatsapps
Beautiful Sapna Vip Call Girls Hauz Khas 9711199012 Call /Whatsappssapnasaifi408
 
Invezz.com - Grow your wealth with trading signals
Invezz.com - Grow your wealth with trading signalsInvezz.com - Grow your wealth with trading signals
Invezz.com - Grow your wealth with trading signalsInvezz1
 
Ukraine War presentation: KNOW THE BASICS
Ukraine War presentation: KNOW THE BASICSUkraine War presentation: KNOW THE BASICS
Ukraine War presentation: KNOW THE BASICSAishani27
 
CebaBaby dropshipping via API with DroFX.pptx
CebaBaby dropshipping via API with DroFX.pptxCebaBaby dropshipping via API with DroFX.pptx
CebaBaby dropshipping via API with DroFX.pptxolyaivanovalion
 
Smarteg dropshipping via API with DroFx.pptx
Smarteg dropshipping via API with DroFx.pptxSmarteg dropshipping via API with DroFx.pptx
Smarteg dropshipping via API with DroFx.pptxolyaivanovalion
 
VidaXL dropshipping via API with DroFx.pptx
VidaXL dropshipping via API with DroFx.pptxVidaXL dropshipping via API with DroFx.pptx
VidaXL dropshipping via API with DroFx.pptxolyaivanovalion
 
Midocean dropshipping via API with DroFx
Midocean dropshipping via API with DroFxMidocean dropshipping via API with DroFx
Midocean dropshipping via API with DroFxolyaivanovalion
 

Kürzlich hochgeladen (20)

Ravak dropshipping via API with DroFx.pptx
Ravak dropshipping via API with DroFx.pptxRavak dropshipping via API with DroFx.pptx
Ravak dropshipping via API with DroFx.pptx
 
Carero dropshipping via API with DroFx.pptx
Carero dropshipping via API with DroFx.pptxCarero dropshipping via API with DroFx.pptx
Carero dropshipping via API with DroFx.pptx
 
BigBuy dropshipping via API with DroFx.pptx
BigBuy dropshipping via API with DroFx.pptxBigBuy dropshipping via API with DroFx.pptx
BigBuy dropshipping via API with DroFx.pptx
 
Unveiling Insights: The Role of a Data Analyst
Unveiling Insights: The Role of a Data AnalystUnveiling Insights: The Role of a Data Analyst
Unveiling Insights: The Role of a Data Analyst
 
Customer Service Analytics - Make Sense of All Your Data.pptx
Customer Service Analytics - Make Sense of All Your Data.pptxCustomer Service Analytics - Make Sense of All Your Data.pptx
Customer Service Analytics - Make Sense of All Your Data.pptx
 
(PARI) Call Girls Wanowrie ( 7001035870 ) HI-Fi Pune Escorts Service
(PARI) Call Girls Wanowrie ( 7001035870 ) HI-Fi Pune Escorts Service(PARI) Call Girls Wanowrie ( 7001035870 ) HI-Fi Pune Escorts Service
(PARI) Call Girls Wanowrie ( 7001035870 ) HI-Fi Pune Escorts Service
 
VIP High Profile Call Girls Amravati Aarushi 8250192130 Independent Escort Se...
VIP High Profile Call Girls Amravati Aarushi 8250192130 Independent Escort Se...VIP High Profile Call Girls Amravati Aarushi 8250192130 Independent Escort Se...
VIP High Profile Call Girls Amravati Aarushi 8250192130 Independent Escort Se...
 
Schema on read is obsolete. Welcome metaprogramming..pdf
Schema on read is obsolete. Welcome metaprogramming..pdfSchema on read is obsolete. Welcome metaprogramming..pdf
Schema on read is obsolete. Welcome metaprogramming..pdf
 
Mature dropshipping via API with DroFx.pptx
Mature dropshipping via API with DroFx.pptxMature dropshipping via API with DroFx.pptx
Mature dropshipping via API with DroFx.pptx
 
dokumen.tips_chapter-4-transient-heat-conduction-mehmet-kanoglu.ppt
dokumen.tips_chapter-4-transient-heat-conduction-mehmet-kanoglu.pptdokumen.tips_chapter-4-transient-heat-conduction-mehmet-kanoglu.ppt
dokumen.tips_chapter-4-transient-heat-conduction-mehmet-kanoglu.ppt
 
Generative AI on Enterprise Cloud with NiFi and Milvus
Generative AI on Enterprise Cloud with NiFi and MilvusGenerative AI on Enterprise Cloud with NiFi and Milvus
Generative AI on Enterprise Cloud with NiFi and Milvus
 
Week-01-2.ppt BBB human Computer interaction
Week-01-2.ppt BBB human Computer interactionWeek-01-2.ppt BBB human Computer interaction
Week-01-2.ppt BBB human Computer interaction
 
BabyOno dropshipping via API with DroFx.pptx
BabyOno dropshipping via API with DroFx.pptxBabyOno dropshipping via API with DroFx.pptx
BabyOno dropshipping via API with DroFx.pptx
 
Beautiful Sapna Vip Call Girls Hauz Khas 9711199012 Call /Whatsapps
Beautiful Sapna Vip  Call Girls Hauz Khas 9711199012 Call /WhatsappsBeautiful Sapna Vip  Call Girls Hauz Khas 9711199012 Call /Whatsapps
Beautiful Sapna Vip Call Girls Hauz Khas 9711199012 Call /Whatsapps
 
Invezz.com - Grow your wealth with trading signals
Invezz.com - Grow your wealth with trading signalsInvezz.com - Grow your wealth with trading signals
Invezz.com - Grow your wealth with trading signals
 
Ukraine War presentation: KNOW THE BASICS
Ukraine War presentation: KNOW THE BASICSUkraine War presentation: KNOW THE BASICS
Ukraine War presentation: KNOW THE BASICS
 
CebaBaby dropshipping via API with DroFX.pptx
CebaBaby dropshipping via API with DroFX.pptxCebaBaby dropshipping via API with DroFX.pptx
CebaBaby dropshipping via API with DroFX.pptx
 
Smarteg dropshipping via API with DroFx.pptx
Smarteg dropshipping via API with DroFx.pptxSmarteg dropshipping via API with DroFx.pptx
Smarteg dropshipping via API with DroFx.pptx
 
VidaXL dropshipping via API with DroFx.pptx
VidaXL dropshipping via API with DroFx.pptxVidaXL dropshipping via API with DroFx.pptx
VidaXL dropshipping via API with DroFx.pptx
 
Midocean dropshipping via API with DroFx
Midocean dropshipping via API with DroFxMidocean dropshipping via API with DroFx
Midocean dropshipping via API with DroFx
 

Hierarchical Clustering Technique for Customer Segmentation

  • 1. School of Data Science and Forecasting MBA -Business Analytics Presentation of Data Mining and Warehousing On Hierarchical Clustering Technique Presented By: Yashraj Nigam Tanvi Bhave Anjali Agarwal Presented To: Mr. Viney Sharma
  • 2. CLUSTERING Clustering is the task of dividing the population or data points into a number of groups such that data points in the same groups are more similar to other data points in the same group and dissimilar to the data points in other groups. It is basically a collection of objects on the basis of similarity and dissimilarity between them. In simple words, the aim is to segregate groups with similar traits and assign them into clusters. Let’s understand this with an example. Suppose, you are the head of a rental store and wish to understand preferences of your customers to scale up your business. Is it possible for you to look at details of each customer and devise a unique business strategy for each one of them? Definitely not. But, what you can do is to cluster all of your customers into say 10 groups based on their purchasing habits and use a separate strategy for customers in each of these 10 groups. And this is what we call clustering.
  • 3.
  • 4. CLUSTERING APPLICATIONS Clustering algorithms can be applied in many fields, for instance: a) Marketing: finding groups of customers with similar behavior given a large database of customer data containing their properties and past buying records b) Biology: classification of plants and animals given their features c) Libraries: book ordering d) Insurance: identifying groups of motor insurance policy holders with a high average claim cost; identifying frauds e) City-planning: identifying groups of houses according to their house type, value and geographical location f) Earthquake studies: clustering observed earthquake epicenters to identify dangerous zones
  • 5. Types of Agglomerative Techniques • Single-linkage Technique • Complete-linkage Technique • Average linkage Technique
  • 6. Single-Linkage Technique Minimum distance clustering is also called as single linkage hierarchical clustering or nearest neighbor clustering. Distance between two clusters is defined by the minimum distance between objects of the two clusters, as shown below.
  • 7.
  • 8. Complete-Linkage Technique A connected component is a maximal set of connected points such that there is a path connecting each pair. A clique is a set of points that are completely linked with each other.
  • 9.
  • 12. 1. SELECT THE DATASET FOR CLUSTERING
  • 13. 2. CLICK ON CLUSTER TAB AND CHOOSE HIERARICHAL CLUSTERER
  • 14. 3. DOUBLE CLICK ON HIERARCHICAL CLUSTERER TO CHANGE NUMBER OF CLUSTERS AND DISTANCE FUNCTION
  • 15. 4. CLICK ON START TO INITIATING CLUSTERING PROCESS
  • 16. 5. RIGHT CLICK ON RESULT AND SELECT VISUALIZE CLUSTER ASSIGNMENT
  • 17. 6. INTERPRET THE RESULTS