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Descriptive Data Mining

K Mean Clustering

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Business Analytics

Lecture # 10

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TOPICS to be COVERED

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k-Means Clustering

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Hierarchical Clustering versus k-Means Clustering

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k-means Clustering

  • k-means clustering, assigns each observation to one of k clusters in a manner such that the observations assigned to the same cluster are as similar as possible.

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FIRST CLUSTERING SCHEME

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CENTROIDS UPDATE

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AGAIN CENTROIDS UPDATE

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CLUSTERING

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Cluster Analysis

Hierarchical Clustering Versus k-Means Clustering

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Hierarchical Clustering

k-Means Clustering

Suitable when we have a small data set (e.g., less than 500 observations) and want to easily examine solutions with increasing numbers of clusters.

Suitable when you know how many clusters you want and you have a larger data set (e.g., larger than 500 observations).

Convenient method if you want to observe how clusters are nested.

Partitions the observations,

which is appropriate if trying to summarize the data with k

“average” observations that describe the data with the minimum amount of error.

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Thank You !

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