Chap12_ClusterAnalysis

Chap12_ClusterAnalysis - Chapter 12 Cluster Analysis Data...

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Chapter 12 – Cluster Analysis © Galit Shmueli and Peter Bruce 2008 Data Mining for Business Intelligence Shmueli, Patel & Bruce
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Clustering: The Main Idea Goal: Form groups (clusters) of similar records Used for segmenting markets into groups of similar customers Example: Claritas segmented US neighborhoods based on demographics & income: “Furs & station wagons,” “Money & Brains”, …
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Other Applications Periodic table of the elements Classification of species Grouping securities in portfolios Grouping firms for structural analysis of economy Army uniform sizes
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Example: Public Utilities Goal: find clusters of similar utilities Data: 22 firms, 8 variables Fixed-charge covering ratio Rate of return on capital Cost per kilowatt capacity Annual load factor Growth in peak demand Sales % nuclear Fuel costs per kwh
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Company Fixed_charge RoR Cost Load Demand Sales Nuclear Fuel_Cost Arizona 1.06 9.2 151 54.4 1.6 9077 0 0.628 Boston 0.89 10.3 202 57.9 2.2 5088 25.3 1.555 Central 1.43 15.4 113 53 3.4 9212 0 1.058 Commonwealth 1.02 11.2 168 56 0.3 6423 34.3 0.7 Con Ed NY 1.49 8.8 192 51.2 1 3300 15.6 2.044 Florida 1.32 13.5 111 60 -2.2 11127 22.5 1.241 Hawaiian 1.22 12.2 175 67.6 2.2 7642 0 1.652 Idaho 1.1 9.2 245 57 3.3 13082 0 0.309 Kentucky 1.34 13 168 60.4 7.2 8406 0 0.862 Madison 1.12 12.4 197 53 2.7 6455 39.2 0.623 Nevada 0.75 7.5 173 51.5 6.5 17441 0 0.768 New England 1.13 10.9 178 62 3.7 6154 0 1.897 Northern 1.15 12.7 199 53.7 6.4 7179 50.2 0.527 Oklahoma 1.09 12 96 49.8 1.4 9673 0 0.588 Pacific 0.96 7.6 164 62.2 -0.1 6468 0.9 1.4 Puget 1.16 9.9 252 56 9.2 15991 0 0.62 San Diego 0.76 6.4 136 61.9 9 5714 8.3 1.92 Southern 1.05 12.6 150 56.7 2.7 10140 0 1.108 Texas 1.16 11.7 104 54 -2.1 13507 0 0.636 Wisconsin 1.2 11.8 148 59.9 3.5 7287 41.1 0.702 United 1.04 8.6 204 61 3.5 6650 0 2.116 Virginia 1.07 9.3 174 54.3 5.9 10093 26.6 1.306
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Low fuel cost, low sales Sales & Fuel Cost: 3 rough clusters can be seen High fuel cost, low sales Low fuel cost, high sales
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Chap12_ClusterAnalysis - Chapter 12 Cluster Analysis Data...

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