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Business Intelligence and Data Mining by Anil Maheshwari

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CHAPTER 8

Cluster Analysis

Cluster analysis is used for automatic identification of natural groupings of things. It is also known as the segmentation technique. In this technique, data instances that are similar to (or near) each other are categorized into one cluster. Similarly, data instances that are very different (or far away) from each other are moved into different clusters.

Clustering is an unsupervised learning technique as there is no output or dependent variable for which a right or wrong answer can be computed. The correct number of clusters or the definition of those clusters is not known ahead of time. Clustering techniques can only suggest to the user how many clusters would make sense from the characteristics of the data. The ...

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