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Introduction to R for Business Intelligence

You're reading from   Introduction to R for Business Intelligence Profit optimization using data mining, data analysis, and Business Intelligence

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Product type Paperback
Published in Aug 2016
Publisher Packt
ISBN-13 9781785280252
Length 228 pages
Edition 1st Edition
Languages
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Author (1):
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Jay Gendron Jay Gendron
Author Profile Icon Jay Gendron
Jay Gendron
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Table of Contents (13) Chapters Close

Preface 1. Extract, Transform, and Load FREE CHAPTER 2. Data Cleaning 3. Exploratory Data Analysis 4. Linear Regression for Business 5. Data Mining with Cluster Analysis 6. Time Series Analysis 7. Visualizing the Datas Story 8. Web Dashboards with Shiny A. References
B. Other Helpful R Functions C. R Packages Used in the Book
D. R Code for Supporting Market Segment Business Case Calculations

Explaining clustering analysis

According to Han (2011), Clustering is the process of grouping a set of data objects into multiple groups or clusters so that objects within a cluster have high similarity, but are very dissimilar to objects in other clusters (p. 443).

Imagine a dinner party has just started. You see a medium-sized rectangular room with a number of people in it. The room is filled with people who are socializing. You notice that people have formed small groups. What draws them together? It could be their existing friendship. Perhaps it is a future networking opportunity. Some groups may form for less obvious reasons. One thing you can say is that it would be unlikely to see everyone in the center of the room talking together as a single group of people. Keep this mental image in your mind because it represents an underlying aspect of cluster analysis.

Clusters are collections of points from a multidimensional set of data such that they minimize the distance between each cluster...

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