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Cluster Analysis -Properties of Clustering and Applications of Cluster Analysis

CLUSTER ANALYSIS

Cluster analysis, also known as clustering, is a method of data mining that groups similar data points together. The goal of cluster analysis is to divide a dataset into groups (or clusters) such that the data points within each group are more similar to each other than to data points in other groups. This process is often used for exploratory data analysis and can help identify patterns or relationships within the data that may not be immediately obvious. There are many different algorithms used for cluster analysis, such as k-means, hierarchical clustering, and density-based clustering. The choice of algorithm will depend on the specific requirements of the analysis and the nature of the data being analyzed.

Cluster Analysis is the process to find similar groups of objects in order to form clusters. It is an unsupervised machine learning-based algorithm that acts on unlabelled data. A group of data points would comprise together to form a cluster in which all the objects would belong to the same group.

The given data is divided into different groups by combining similar objects into a group. This group is nothing but a cluster. A cluster is nothing but a collection of similar data which is grouped together. 

For example, consider a dataset of vehicles given in which it contains information about different vehicles like cars,  buses, bicycles, etc. As it is unsupervised learning there are no class labels like Cars, Bikes, etc for all the vehicles, all the data is combined and is not in a structured manner.

Properties of Clustering :

1. Clustering Scalability: Nowadays there is a vast amount of data and should be dealing with huge databases. In order to handle extensive databases, the clustering algorithm should be scalable. Data should be scalable, if it is not scalable, then we can’t get the appropriate result which would lead to wrong results.

2. High Dimensionality: The algorithm should be able to handle high dimensional space along with the data of small size.

3. Algorithm Usability with multiple data kinds: Different kinds of data can be used with algorithms of clustering. It should be capable of dealing with different types of data like discrete, categorical and interval-based data, binary data etc.

4. Dealing with unstructured data: There would be some databases that contain missing values, and noisy or erroneous data. If the algorithms are sensitive to such data then it may lead to poor quality clusters. So it should be able to handle unstructured data and give some structure to the data by organising it into groups of similar data objects. This makes the job of the data expert easier in order to process the data and discover new patterns.

5. Interpretability: The clustering outcomes should be interpretable, comprehensible, and usable. The interpretability reflects how easily the data is understood.

Clustering Methods:

The clustering methods can be classified into the following categories:

•Partitioning Method

•Hierarchical Method

•Density-based Method

•Grid-Based Method

•Model-Based Method

•Constraint-based Method

Partitioning Method: It is used to make partitions on the data in order to form clusters. If  “n” partitions are done on  “p” objects of the database then each partition is represented by a cluster and n < p.  The two conditions which need to be satisfied with this Partitioning Clustering Method are: 

•One objective should only belong to only one group.

•There should be no group without even a single purpose.

In the partitioning method, there is one technique called iterative relocation, which means the object will be moved from one group to another to improve the partitioning  

Hierarchical Method: In this method, a hierarchical decomposition of the given set of data objects is created. We can classify hierarchical methods and will be able to know the purpose of classification on the basis of how the hierarchical decomposition is formed. There are two types of approaches for the creation of hierarchical decomposition, they are: 

Agglomerative Approach: The agglomerative approach is also known as the bottom-up approach. Initially, the given data is divided into which objects form separate groups. Thereafter it keeps on merging the objects or the groups that are close to one another which means that they exhibit similar properties. This merging process continues until the termination condition holds.

Divisive Approach: The divisive approach is also known as the top-down approach. In this approach, we would start with the data objects that are in the same cluster. The group of individual clusters is divided into small clusters by continuous iteration. The iteration continues until the condition of termination is met or until each cluster contains one object.

Once the group is split or merged then it can never be undone as it is a rigid method and is not so flexible. The two approaches which can be used to improve the Hierarchical Clustering Quality in Data Mining are: –

•One should carefully analyze the linkages of the object at every partitioning of hierarchical clustering.

•One can use a hierarchical agglomerative algorithm for the integration of hierarchical agglomeration. In this approach, first, the objects are grouped into micro-clusters. After grouping data objects into microclusters, macro clustering is performed on the microcluster.

Density-Based Method: The density-based method mainly focuses on density. In this method, the given cluster will keep on growing continuously as long as the density in the neighbourhood exceeds some threshold, i.e,  for each data point within a given cluster. The radius of a given cluster has to contain at least a minimum number of points.

Grid-Based Method: In the Grid-Based method a grid is formed using the object together,i.e, the object space is quantized into a finite number of cells that form a grid structure. One of the major advantages of the grid-based method is fast processing time and it is dependent only on the number of cells in each dimension in the quantized space.  The processing time for this method is much faster so it can save time.

Model-Based Method: In the model-based method, all the clusters are hypothesized in order to find the data which is best suited for the model. The clustering of the density function is used to locate the clusters for a given model. It reflects the spatial distribution of data points and also provides a way to automatically determine the number of clusters based on standard statistics, taking outlier or noise into account. Therefore it yields robust clustering methods.

Constraint-Based Method: The constraint-based clustering method is performed by the incorporation of application or user-oriented constraints. A constraint refers to the user expectation or the properties of the desired clustering results.  Constraints provide us with an interactive way of communication with the clustering process. The user or the application requirement can specify constraints.  

Explanation:

Cluster Analysis is a key technique in data mining, statistics, and machine learning that involves grouping a set of data objects into clusters so that objects in the same cluster are highly similar to each other and different from those in other clusters. It is an unsupervised learning method, meaning it does not rely on predefined categories or labeled data. Instead, it identifies natural groupings or patterns hidden within datasets.

The main goal of cluster analysis is to achieve high intra-cluster similarity (similarity within clusters) and low inter-cluster similarity (difference between clusters). This process helps in understanding the structure of data, detecting patterns, and simplifying complex datasets for better decision-making and analysis.

Cluster analysis can be applied to various types of data — numerical, categorical, or mixed. It uses different distance or similarity measures such as Euclidean distance, Manhattan distance, or cosine similarity to determine how close or far apart objects are in a dataset.

Steps in Cluster Analysis

  1. Data Collection and Preprocessing:
    The process begins with gathering relevant data and preparing it by handling missing values, normalizing attributes, and removing noise or outliers.

  2. Selection of Clustering Method:
    Depending on the nature of the data and the objective, an appropriate algorithm is chosen — such as K-Means, K-Medoids, Hierarchical Clustering, or DBSCAN.

  3. Cluster Formation:
    The chosen algorithm divides the data into clusters by grouping similar objects based on their features.

  4. Evaluation and Validation:
    The quality of the clusters is assessed using metrics like the Silhouette Coefficient, Dunn Index, or Davies–Bouldin Index to ensure meaningful results.

Applications of Cluster Analysis

  • Marketing: Identifying customer groups with similar buying habits.

  • Healthcare: Grouping patients with similar symptoms or genetic traits.

  • Education: Categorizing students based on performance or learning style.

  • Image Processing: Segmenting similar regions or objects in images.

  • Finance: Detecting fraudulent transactions or risk groups

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