Re: Cluster analysis expert needed

Posted by Kirill Orlov on Oct 15, 2014; 10:24am
URL: http://spssx-discussion.165.s1.nabble.com/Cluster-analysis-expert-needed-tp5727586p5727597.html

Please remember that Two-step cluster treats categorical variables, including  binary, as specifically nominal ones (read more http://stats.stackexchange.com/q/116856/3277). Hierarchical method (or, say, medoid method as well) is much more versatile in respect to binary data.

Also, the option to a automatically determine the number of clusters in two-step is not a magic wand feature. This option attempts to derive AIC or BIC clustering criterion measure at a half-way of the clustering process. This is really convenient from perspective of speed/amout of job when number of objects is very large. But is less precise than assessment of the best number of clusters after clustering is done, by comparing many solutions with different number of clusters.

15.10.2014 9:49, silvsoriano пишет:

Thank you for your response, 

I was planning to use binary variables to be able to use hierarchical
cluster analysis and I was also going to use the two step cluster method to
give a more robust explanation in the decision for choosing a number of
groups. 

Based on that number of groups, I was then planning to analyse differences
in employment characteristics and claims on benefits so the demographic
features will help me to understand those differences using again those two
methods. 

Yes, I mean cases in employment and not in employment. 

I am not too sure if this is feasible or not, should I choose other methods?
I was inclined toward clustering techniques because it will differentiate
groups of cases as a whole (considering all the variables at once) and not
dismembering variables and their explanatory strength in the analysis. Would
This be feasible? 

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