How to create a Cluster

Once we have a measure of similarity between cases/variables, we can think about ways in which we can group cases based on their similarity. There are several ways to group cases based on their similarity coefficients. Most of these methods work in a hierarchical way. The principle behind each method is similar in that it begins with all cases being treated as a cluster in its own right. Clusters are then merged based on a criterion specific to the method chosen. So, in all methods we begin with as many clusters as there are cases and end up with just one cluster containing all cases. By inspecting the progression of cluster merging it is possible to isolate clusters of cases with high similarity.

Submitted by,

Abhinav Mangla

Roll No - 12002

Finance Batch

SIBM Bangalore