Cluster Analysis using SAS

Dr. Kartikeya Bolar

Problem at hand
Clustering is about
grouping the cases
Here there are ten
cases which can be cases which can be
grouped based on the
similarity in the variable
income
Applying Hierarchical Clustering
Method- Wards method
Applying Hierarchical Clustering
Method- Wards method
Applying Hierarchical Clustering
Method- Wards method
Output-Dendrogram
The horizontal axis indicates the cases whereas the vertical axis indicates the distance(semipartial
R2)
As one traverses up in the vertical axis the items in the cluster will be more dissimilar
Drawing a horizontal line parallel to the horizontal axis gives the clusters formed by the
intersection of the horizontal lines with the vertical lines. For example in this dendrogram, if a line
is drawn at distance =0.6 , there are two intersection points with the vertical lines hence indicating
two clusters can be formed at that distance
Output-Cluster History
This is the verbal description of
dendrogram
It gives you the history of
intermediate cluster formations
As a norm, wherever there is steep
increase in the value of
SPRSQ(distance), that is the check
point for deciding the number of point for deciding the number of
clusters(we expect less distance
between the items in the cluster)
In this case, rationally there could be
three clusters considering the norm
and the very ideal case is four
clusters
However it all depends on the user
how many clusters are desired and
how much similarity the user likes to
forego