Clustering

What is clustering? A cluster is a group of objects that are similar to other objects in the cluster, and dissimilar to data points in other clusters. Clustering is the act of finding clusters in a dataset through unsupervised methods.

Applications

• Customer segmentation is the practice of partitioning a customer base into groups of individuals that have similar characteristics.
• Banking - clusters of normal transactions to find fraudulent transaction

Algorithms

• Partitioned-based Clustering
  • K-Means, K-Medians, Fuzz c-Means
• Hierarchical Clustering - produces trees of clusters
  • Agglomerative, Divisive
• Density-based Clustering
  • DB Scan

Bottom Up Clustering

• dendrogram Complete Linkage Average Linkage