Premium Essay

The Importance Of Cluster Analysis

Submitted By
Words 2367
Pages 10
1. Introduction
Cluster analysis or clustering is the task of grouping a set of objects in such a way that objects in the same group (called a cluster) are more similar (in some sense or another) to each other than to those in other groups (clusters). Cluster analysis is an unsupervised form of learning, which means, that it doesn't use class labels. This is different from methods like discriminant analysis which use class labels and come under the category of supervised learning. K-means is the most simple and popular algorithm in clustering and was published in 1955, 50 years ago.
The advancement in technology has led to many high-volume, high-dimensional data sets. These huge data sets provide opportunity for automatic data analysis, classification
…show more content…
Learning means that given some training data set, we want to predict the class labels of the testing data set. Apart from supervised learning in which class labels are known and unsupervised learning in which class labels are unknown, there is a third type of hybrid learning called semi-supervised. In this type of learning, we have class labels for some portion of the training set. But instead of discarding the large portion of training set with unlabelled data, it is also used in the learning process. Instead of using class labels, pair-wise constraints are used. According to the must-link constraint two objects should be assigned to the same cluster while cannot-link constraint specifies that the cluster labels of two objects should be different.

2. Data Clustering
"The goal of cluster analysis is to discover natural grouping of a set of patterns, points or objects."
Clustering can be defined on the basis of similarity, such that the intraclass variation is low while the interclass variation is high. Clusters differ in terms of shape, size and density. If there is noise in the data, then detection of cluster becomes even more difficult. "An ideal cluster can be defined as a set of points that is compact and isolated." In reality, the interpretation of cluster requires domain knowledge. Even though humans can seek clusters in two and three dimensions, algorithms are required for high dimensional data. In addition to this, the number
…show more content…
Examples: images, text, audio, video etc. They don't follow any specific format. Structured data on the other hand has semantic relationships within objects. Most clustering approaches use a vector based feature representation, instead of the structures in the object.
Clustering ensembles
This method earlier used for supervised learning, is now also done for unsupervised learning. Multiple partitions called clustering ensembles are obtained by taking multiple looks at the same data. These multiple partitions are combined together and give a good partitioning result, even if the individual clusters were not good enough. Multiple partitions can be generated in various ways. Applying different clustering algorithms, applying same algorithm with different parameters or combining different feature representations and clustering algorithms are some of them.
Semi supervised learning
Any extra information along with the n x d pattern matrix or n x n similarity matrix helps in determining a good cluster. The algorithm using the extra information is said to be operating in a semi supervised mode of learning. This side information can be specified in forms of constraints like must-link and cannot-link, or seeding, where small amount of labelled data is given along with large unlabelled

Similar Documents

Free Essay

Digital Marketing(Group 6)

...Institute of Management, Christ University Kengeri Campus, Bangalore. Review On Cluster Analysis Submitted for the partial fulfillment of process related to Continuous Internal Assessment 1 In Marketing Analytics [MBA - III Trimester (MBA 322)] Submitted By P.Akhilesh 1420419 Cluster analysis? The Cluster Analysis is an explorative analysis that tries to identify structures within the data.  Cluster analysis is also called segmentation analysis .It is used to identify groups of cases if the alignment is not previously known.  Because it is explorative it does make any distinction between dependent and independent variables.  The different cluster analysis methods that SPSS offers can handle binary, nominal, ordinal, and scale (interval or ratio) data. Different types of cluster analysis include: * Hierarchical Analysis * Two step Cluster * K-means cluster From the given data set: * We have both continuous and categorical variables * Continuous variables include: Attitude towards Nike, Awareness towards Nike, Preference for Nike Loyalty for Nike and purchase intention for Nike * Categorical variables: Sex, Hierarchical Cluster Analysis: Ward method: * Here it is clearly mentioned that from cluster one 15 respondents are available , from cluster two 15 respondents are available and from cluster three 10 respondents are available * We have 5 missing respondents who had not respondent or......

Words: 669 - Pages: 3

Free Essay

Analysis of Healthy Life Style Consumer

...Introduction The consumer need for wellness products and various services have continued to evolve in India as the income levels are growing along with it awareness is rising. The lifestyle of a consumer is an important part and with every passing day each and every consumer is getting known to this. Health/wellness which was recently considered as a niche concept has managed to gather a mainstream audience in today’s time. Consumers today want to have total control about their look, how they feel and this is driving purchase decision across major categories like food, beverages , personal care and services. In response to this marketers have launched major products and even services that contribute round 600 billion INR to the wellness market in India .This industry is continuing to grow and it still remains a fraction which is about 4 % or less of the overall consumer expenditure in India. Indian consumers have shown a wide display of behaviour characteristics right from passive where demand of such wellness products is very less to believers for whom wellness is an integral part. Thus it is very important for the wellness players to identify their target segment or core consumer target, so that they can align their value proposition with specific needs of this segment. The scope in the wellness market in India is immense–even a 1% increase in consumer expenditure can potentially create an additional opportunity of six billion INR for wellness players. Today’s young......

Words: 5535 - Pages: 23

Premium Essay

Evolution of Management Accounting Practices

...Magdy Abdel-Kadera and Robert Lutherb a: Department of Accounting, Finance and Management, University of Essex, Wivenhoe Park, Colchester, CO4 3SQ (Correspondence address) b: Bristol Business School, U.W.E., Bristol, BS16 1QY The authors are grateful for the constructive comments of participants at the EIASM conference on New Directions in Management Accounting: Innovations in Practice and Research, December 2002, Brussels. Financial support from the Chartered Institute of Management Accountants is acknowledged with gratitude. 2 An Empirical Investigation of the Evolution of Management Accounting Practices Abstract This paper investigates and reports on the status of management accounting practices in UK industry. The analysis operationalises the IFAC statement on Management Accounting Concepts and its description of the evolution of management accounting. The results, based on responses from 123 practising management accountants, suggest that the management accounting employed in many UK industrial companies is not particularly sophisticated. Budgeting, product profitability and financial performance measurement remain the central pillars and some of the newer management accounting techniques are less widely used than might be assumed from a reading of the textbooks. There is little evidence of management accounting concerned directly with ‘value creation’. 3 1. Introduction During the 1980s...

Words: 11706 - Pages: 47

Premium Essay

Business Intelligence

...Introduction 3 2. Executive Summary 5 3. Data Preprocessing 6 4. Analysis 8 4.1 Data Partition 8 4.2 Stat Explore 10 4.3 Clustering & Segmentation: 12 4.4 Decision Tree 24 4.5 Interactive Decision Tree 28 4.6 Gradient Boosting 33 4.7 Linear Regression 35 4.8 Neural Network 38 4.9 Compare Models 40 4.10 Score New Data 42 4.11 Logistic Regression 44 5. Conclusion 49 1. Introduction Given the complexity and the large extent of the interdependencies between airports, aircraft, passengers, airlines, control centers, etc. of the national aviation system, flight delays occur frequently. Recently, the OAG Flight Status database reported that over 4.6 million flights arrived more than 15 minutes late at their destination; a conservative average of 80 passengers per flight equates to about 368 million passengers being inconvenienced. Inspired by this, our term paper predicts the delay in flights of some of the players in the U.S. Airlines Industry and the impact of the flight delays to improve their performance (July 2014 to June 2015). DATA SOURCE The secondary data source we will use is available under Airline On-time Statistics on the TranStats website of the Bureau of Transportation Statistics as our source of data. We extracted information for specific carriers from all major airports during a particular time period. For the purpose of our analysis, we restricted the scope of our study to focus on the arrivals in......

Words: 3404 - Pages: 14

Free Essay

Cluster

...ASSIGNMENT Cluster Analysis of Godrej India Limited Case Submitted to: Prof. Sreedhara Raman Submitted by: Step 1: Agglomeration Schedule: The first step in Cluster Analysis is to find out the number of clusters that should be made. From the below table we observe that the difference between 16th and 15th value is the highest =4.5. Thus, the number of cluster taken is 4. Agglomeration Schedule | Stage | Cluster Combined | Coefficients | Stage Cluster First Appears | Next Stage | | Cluster 1 | Cluster 2 | | Cluster 1 | Cluster 2 | | 1 | 1 | 19 | 11.000 | 0 | 0 | 12 | 2 | 11 | 20 | 15.000 | 0 | 0 | 11 | 3 | 8 | 9 | 15.000 | 0 | 0 | 8 | 4 | 6 | 10 | 17.000 | 0 | 0 | 11 | 5 | 5 | 13 | 18.000 | 0 | 0 | 12 | 6 | 14 | 18 | 19.000 | 0 | 0 | 15 | 7 | 7 | 15 | 20.000 | 0 | 0 | 15 | 8 | 2 | 8 | 20.500 | 0 | 3 | 14 | 9 | 16 | 17 | 22.000 | 0 | 0 | 14 | 10 | 4 | 12 | 23.000 | 0 | 0 | 16 | 11 | 6 | 11 | 24.000 | 4 | 2 | 13 | 12 | 1 | 5 | 24.000 | 1 | 5 | 13 | 13 | 1 | 6 | 26.750 | 12 | 11 | 16 | 14 | 2 | 16 | 28.000 | 8 | 9 | 17 | 15 | 7 | 14 | 28.000 | 7 | 6 | 18 | 16 | 1 | 4 | 32.500 | 13 | 10 | 19 | 17 | 2 | 3 | 32.800 | 14 | 0 | 18 | 18 | 2 | 7 | 36.250 | 17 | 15 | 19 | 19 | 1 | 2 | 44.300 | 16 | 18 | 0 | Step 2: Final Cluster Centers: From this table we identify the major characteristics of the respondents belonging to different clusters, which will help us to create a Cluster Profile. Final Cluster......

Words: 685 - Pages: 3

Premium Essay

Globalization and Strategies Plan of Apple

...Journal of Property Investment & Finance Emerald Article: Inflation and rental change in industrial property: A multi-level analysis Catherine Jackson, Michael White Article information: To cite this document: Catherine Jackson, Michael White, (2005),"Inflation and rental change in industrial property: A multi-level analysis", Journal of Property Investment & Finance, Vol. 23 Iss: 4 pp. 342 - 363 Permanent link to this document: http://dx.doi.org/10.1108/14635780510602417 Downloaded on: 02-11-2012 References: This document contains references to 41 other documents Citations: This document has been cited by 1 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 1025 times since 2005. * Access to this document was granted through an Emerald subscription provided by UNIVERSITI MALAYSIA PERLIS For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of......

Words: 10213 - Pages: 41

Free Essay

Market Value for Olive Oil in Chile

...K-Means Cluster Analysis Chapter 3 PPDM Cl Class © Tan,Steinbach, Kumar Introduction to Data Mining 4/18/2004 1 What is Cluster Analysis? Finding groups of objects such that the objects in a group will be similar (or related) to one another and different from (or unrelated to) the objects in other groups Intra-cluster distances are minimized Inter cluster Inter-cluster distances are maximized © Tan,Steinbach, Kumar Introduction to Data Mining 4/18/2004 2 Applications of Cluster Analysis Understanding – Group related documents p for browsing, group genes and proteins that have similar functionality, or group stocks with similar price fluctuations Discovered Clusters Industry Group 1 2 3 4 Applied-Matl-DOWN,Bay-Network-Down,3-COM-DOWN, Cabletron-Sys-DOWN,CISCO-DOWN,HP-DOWN, DSC-Comm-DOWN,INTEL-DOWN,LSI-Logic-DOWN, Micron-Tech-DOWN,Texas-Inst-Down,Tellabs-Inc-Down, Natl-Semiconduct-DOWN,Oracl-DOWN,SGI-DOWN, Sun-DOWN Apple-Comp-DOWN,Autodesk-DOWN,DEC-DOWN, ADV-Micro-Device-DOWN,Andrew-Corp-DOWN, Computer-Assoc-DOWN,Circuit-City-DOWN, Compaq-DOWN, EMC-Corp-DOWN, Gen-Inst-DOWN, Motorola-DOWN,Microsoft-DOWN,Scientific-Atl-DOWN Fannie-Mae-DOWN,Fed-Home-Loan-DOWN, Fannie Mae DOWN Fed Home Loan DOWN MBNA-Corp-DOWN,Morgan-Stanley-DOWN Baker-Hughes-UP,Dresser-Inds-UP,Halliburton-HLD-UP, Louisiana-Land-UP,Phillips-Petro-UP,Unocal-UP, Schlumberger-UP Technology1-DOWN Technology2-DOWN Financial-DOWN Oil-UP Summarization – Reduce the...

Words: 2980 - Pages: 12

Free Essay

Facebook’s 8 Fundamental Hooks and 6 Basic User Types: a Psychographic Segmentation.

...Degruttola for their assistance with earlier versions of this study. Please address correspondence to David C. Evans Ph.D. at david@psychster.com . Evans et al., “Facebook Segmentation,” 37 EXECUTIVE SUMMARY Understanding the different types of Facebook users is the first step to effectively communicating with them and providing appropriate features. Psychographic segmentation is a statistical procedure that first identifies the fundamental value-propositions or “hooks” of a technology, and then derives the user types who respond similarly to those hooks. Partnering with Psychster Inc., students in the University of Washington Master of Communication program in Digital Media (MCDM) applied this method to 236 Facebook users who rated the importance of 90 value-propositions via an online survey. The 6 user types that were found can be remembered by the acronym FBSIGN: 1. 2. 3. 4. 5. 6. Fans join interest groups based on politics, art, and music, and they often link their Facebook account to other websites. Branders prefer public to private networking, and they often use Facebook as a tool for business, building a personal brand, or accumulating social capital. Social-Searchers employ Facebook to learn about news, media, and entertainment, but they show little interest in apps and games....

Words: 5682 - Pages: 23

Premium Essay

Operations Management

...Journal of Vacation Marketing http://jvm.sagepub.com/ Benefit segmentation of potential wellbeing tourists Juho Pesonen, Tommi Laukkanen and Raija Komppula Journal of Vacation Marketing 2011 17: 303 DOI: 10.1177/1356766711423322 The online version of this article can be found at: http://jvm.sagepub.com/content/17/4/303 Published by: http://www.sagepublications.com Additional services and information for Journal of Vacation Marketing can be found at: Email Alerts: http://jvm.sagepub.com/cgi/alerts Subscriptions: http://jvm.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations: http://jvm.sagepub.com/content/17/4/303.refs.html >> Version of Record - Oct 14, 2011 What is This? Downloaded from jvm.sagepub.com at EMIRATES AHM on February 25, 2012 Article Journal of Vacation Marketing 17(4) 303–314 ª The Author(s) 2011 Reprints and permission: sagepub.co.uk/journalsPermissions.nav DOI: 10.1177/1356766711423322 jvm.sagepub.com Benefit segmentation of potential wellbeing tourists Juho Pesonen, Tommi Laukkanen and Raija Komppula University of Eastern Finland, Finland Abstract The purpose of this study is to segment tourists according to the benefits they seek from a tourism destination. These segments are examined in order to find attractive segments for local wellbeing products. Segmentation in the context of wellbeing and wellness provides companies......

Words: 7964 - Pages: 32

Free Essay

Hagft

...Email: ch8136@stu. edu. tw Abstract In recent years, the study affective factor selection (AFs) for Kansei engineering (KE) has been an important issue in the industrial design field. Consumers’ affective responses (CARs) are usually presented in the form of a choice of adjectives. Based on the KE concept, this study conducted Factor Analysis (FA), Clustering Analysis (CA) and Procrustes Analysis (PA) to select the CARs from mobile phones product’s shape. First, in the initial stage of the study, 60samples of mobile phones were collected from the fashion market place. Twenty-two pairs of adjectives describing the mobile phones were used for a Semantic Differential (SD) experiment. K-means was implemented to find the clustering segmentations of the CARs according to the factor loading from FA, and to obtain representative pairs of adjectives within the clustering segmentations. In the meanwhile, PA was also used to decide adjective priorities according to the sorting rule. Finally, these two methods were analyzed and compared. Keywords: Kansei engineering, Affective factor, Methodology, Clustering analysis, Procrustes analysis. Introduction In the field of consumer market, the appearance of a product tends to be an important factor affecting consumers’ purchasing decision making. If product designers can notice product forms features selection (PFFs), they can effectively meet the expectations of consumers. Therefore, during the development of a new......

Words: 4374 - Pages: 18

Premium Essay

Does Management Accounting Play Role in Planning Process?

...Universitária, São Paulo City, 05508-900, State of São Paulo, Brazil b Fucape Business School, Av. Fernando Ferrari, 1358, Boa Vista, Vitória-ES, 29075-505, Brazil a r t i c l e i n f o a b s t r a c t This study examines the relationship between management accounting and planning profiles in Brazilian companies. The main goal is to understand the consequences of not including a fully structured management accounting scheme in the planning process. The authors conducted a field research among medium and large-sized companies, using a probabilistic sample from a population of 2281 companies. Using analytic hierarchy process (AHP) and statistical cluster analysis, the authors grouped the entities' strategic budget planning processes into five profiles, after which the authors applied statistical tests to assess the five clusters. The study concludes that poor or fully implemented strategic and budget-planning processes relate to the management accounting profiles of the Brazilian organizations studied. © 2009 Published by Elsevier Inc. Article history: Received 1 March 2009 Received in revised form 1 September 2009 Accepted 1 November 2009 Available online xxxx Keywords: Management accounting Strategic planning Budget 1. Introduction The business environment has become increasingly volatile and unpredictable in recent decades, and business management has become correspondingly more complex. In particular,...

Words: 7654 - Pages: 31

Free Essay

World of Nations

...insight into the functioning of firms in the Wet Grinder Cluster in Tamil Nadu. It is hoped that the student would have discussed firm activities with the organization and departmental heads, executives, field level personnel etc. and found out about their functioning. The report should cover the following information: * Information about the Wet Grinder Cluster * Significance of performance metrics in operations management * Difference between leading and lagging metrics * Lean tools in the Wet Grinder Cluster * Current operational and environmental performance of firms in the Wet Grinder Cluster and suggestions for improvement The following design should be adhered to maintain the quality and standard of report a) This is to serve as a guide to the students in the presentation of research report. While the ideas, the findings and the inferences are of primary importance, their consideration by the reader depends in a large measure upon an orderly presentation. Normally there are three main parts each of which may have several sections as indicated below. The preliminaries: i. The Title page ii. Acknowledgement iii. Table of contents iv. List of tables v. List of figures vi. List of appendices vii. List of abbreviations used viii. Executive summary The text composed of: i. Introduction (Introduction to the title , Profile of Wet Grinder Cluster, Significance / Importance of the Study ,Objectives , Scope ,......

Words: 334 - Pages: 2

Premium Essay

Customer Clusters

...Customer Clusters as Sources of Innovation-Based Competitive Advantage Vishal Bindroo, Babu John Mariadoss, and Rajani Ganesh Pillai ABSTRACT The authors examine the effect of customer clusters on a firm’s innovation. They argue that knowledge leveraged from customer clusters can help the firm develop innovations. The authors specifically concentrate on the effect of a firm’s geographical proximity and diversity of customer clusters on innovation outcomes. In addition to showing the importance of customer cluster proximity on firm innovation, they explore the effect of customer cluster heterogeneity on innovation in an international marketing environment. They test the theoretical model using multicountry data (N = 288) drawn from the U.K. innovation survey implemented by the Economic and Social Research Council, which collected the data across five European countries. Theoretical constructs operate largely as hypothesized and explain a substantial proportion of the variation in the different innovation outcomes tested. Keywords: radical innovation, customer cluster, cluster heterogeneity, proximity, innovation speed I nnovation is frequently acknowledged as the source of organizational renewal and growth, the primary source of competitive advantage (Porter 1990), and central to marketing strategy (Varadarajan and Jayachandran 1999). Because innovation is linked to superior financial performance and survival ability of firms (Agarwal, Cockburn, and McHale 2006),......

Words: 11227 - Pages: 45

Premium Essay

Kudler Fine Foods Network Analysis

...In order to determine the requirements for the new Kudler Fine Foods network design, it is important to understand the importance of communication protocols and define the protocols that would be most effective for the Kudler Fine Foods network. Understanding the usefulness of a traffic analysis and the effect of latency response time and jitter are also necessary. Other aspects of developing an effective network design are understanding the effect of data rate on each part of the network and developing strategies to ensure the availability of network access in switched and routed networks. Communication protocols are the pre-defined set of rules which enable the networked devices to communicate effectively with each other. These protocols determine how messages are sent and received, detect and recover transmission errors and determine how messages are formatted. These protocols are important because they define the guidelines which determine how computers communicate with each other in a standardized manner. The protocol identified for Kudler Fine Foods is the Transmission Control Protocol/Internet Protocol (TCP/IP) Protocol Suite. There are many advantages to using this protocol. It is compatible with all operating systems, hardware, software and network configurations. This protocol is routable and highly scalable which enables expansion of the network as needed. It also provides very reliable data delivery. The Suite includes protocols such as Hypertext......

Words: 995 - Pages: 4

Premium Essay

Bournvita

...Introduction Bournvita is a power brand. Bournvita was launched in 1948 and is one of the oldest brand in the malted beverages segment. The brand is a market leader in the Brown health drink segment with a market share of over 17 %. This is a brand that has sustained over time and competition. Cadbury's - true to its reputation has managed to sustain this brand over these years. The brand has sustained because of Cadbury's invested in the brand and also ensured that the brand changed in tune with the times. Bournvita is a chocolate flavored health drink. When the brand was introduced in the market, it tried to solve a perennial problem that mother's face : a need for a healthy food which is tasty. Bournvita offered that unique combination of health and taste.. The brand used the tagline : Goodness t hat Grows with You. During 1980's the brand changed its focus from Upbringing to Intelligence. The tagline was changed to : Brought Up Right, Bournvita Bright. In 1990's the brand felt that it should be focusing on the overall health of the kid thus changed its focus on Body and Mind. The brand also took Energy as a main focus and thus evolved the famous VO ( voice over) : "Bournvita has proteins, minerals and carbohydrates" . Along came the famous tagline : Tan Ki Shakthi , Man Ki Shakthi. During 1998, the brand faced intense competition from Milo from Nestle. At this time, the brown health food drink segment was facing issues of stagnation because of lack of value......

Words: 4498 - Pages: 18