Identifying the customer segments in the wholesale customers data using AGNES

AGNES is the reverse of DIANA in the sense that it follows a bottom-up approach to clustering the dataset. The following diagram illustrates the working principle of the AGNES algorithm for clustering:

Working of agglomerative hierarchical clustering algorithm

Except for the bottom-up approach followed by AGNES, the implementation details behind the algorithm are the same as for DIANA; therefore, we won't repeat the discussion of the concepts here. The following code block clusters our wholesale dataset into three clusters with AGNES; it also creates a visualization ...

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