Clustering

Clustering is a type of unsupervised learning technique where the objective is to arrive at conclusions based on the patterns found within unlabeled input data. This technique is mainly used to segregate large data into subgroups in order to make informed decisions.

For instance, from a large list of restaurants in a city, it would be useful to segregate the data into subgroups (clusters) based on the type of food, quantity of clients, and style of experience, in order to be able to offer each cluster a service that's been configured to its specific needs.

Clustering algorithms divide the data points into n number of clusters so that the data points in the same cluster have similar features, whereas they differ significantly from the data points in other clusters.

Clustering Types

Clustering algorithms can classify data points using a methodology that is either hard or soft. The former designates data points completely to a cluster, whereas the latter method calculates the probability of each data point belonging to each cluster. For example, for a dataset containing customer's past orders that are divided into eight subgroups (clusters), hard clustering occurs when each customer is placed inside one of the eight clusters. On the other hand, soft clustering assigns each customer a probability of belonging to each of the eight clusters.

Considering that clusters are created based on the similarity between data points, clustering algorithms can be further divided into several groups, depending on the set of rules used to measure similarity. Four of the most commonly known sets of rules are explained as follows:

• Connectivity-based models: This model's approach to similarity is based on proximity in a data space. The creation of clusters can be done by assigning all data points to a single cluster and then partitioning the data into smaller clusters as the distance between data points increases. Likewise, the algorithm can also start by assigning each data point an individual cluster, and then aggregating data points that are close by. An example of a connectivity-based model is hierarchical clustering.
• Density-based models: As the name suggests, these models define clusters by their density in the data space. This means that areas with a high density of data points will become clusters, which are typically separated from one another by low-density areas. An example of this is the DBSCAN algorithm, which will be covered later in this chapter.
• Distribution-based models: Models that fall into this category are based on the probability that all the data points from a cluster follow the same distribution, such as a Gaussian distribution. An example of such a model is the Gaussian Mixture algorithm, which assumes that all data points come from a mixture of a finite number of Gaussian distributions.
• Centroid-based models: These models are based on algorithms that define a centroid for each cluster, which is updated constantly by an iterative process. The data points are assigned to the cluster where their proximity to the centroid is minimized. An example of such a model is the k-means algorithm, which will be discussed later in this chapter.

In conclusion, data points are assigned to clusters based on their similarity to each other and their difference from data points in other clusters. This classification into clusters can be either absolute or variably distributed by determining the probability of each data point belonging to each cluster.

Moreover, there is no fixed set of rules to determine similarity between data points, which is why different clustering algorithms use different rules. Some of the most commonly known sets of rules are connectivity-based, density-based, distribution-based, and centroid-based.

Applications of Clustering

As with all machine learning algorithms, clustering has many applications in different fields, some of which are as follows:

• Search engine results: Clustering can be used to generate search engine results containing keywords that are approximate to the keywords searched by the user and ordered as per the search result with greater similarity. Consider Google as an example; it uses clustering not only for retrieving results but also for suggesting new possible searches.
• Recommendation programs: It can also be used in recommendation programs that cluster together, for instance, people that fall into a similar profile, and then make recommendations based on the products that each member of the cluster has bought. Consider Amazon, for example, which recommends more items based on your purchase history and the purchases of similar users.
• Image recognition: This is where clusters are used to group images that are considered to be similar. For instance, Facebook uses clustering to help suggest who is present in a picture.
• Market segmentation: Clustering can also be used for market segmentation to divide a list of prospects or clients into subgroups in order to provide a customized experience or product. For example, Adobe uses clustering analysis to segment customers in order to target them differently by recognizing those who are more willing to spend money.

The preceding examples demonstrate that clustering algorithms can be used to solve different data problems in different industries, with the primary purpose of understanding large amounts of historical data that, in some cases, can be used to classify new instances.