Search icon CANCEL
Subscription
0
Cart icon
Your Cart (0 item)
Close icon
You have no products in your basket yet
Arrow left icon
Explore Products
Best Sellers
New Releases
Books
Videos
Audiobooks
Learning Hub
Conferences
Free Learning
Arrow right icon
Arrow up icon
GO TO TOP
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

Arrow left icon
Product type Paperback
Published in Aug 2016
Publisher Packt
ISBN-13 9781785280252
Length 228 pages
Edition 1st Edition
Languages
Arrow right icon
Author (1):
Arrow left icon
Jay Gendron Jay Gendron
Author Profile Icon Jay Gendron
Jay Gendron
Arrow right icon
View More author details
Toc

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

Partitioning using k-means clustering

The goal of partitioning is to place partitions and create clusters that reduce the within cluster sum of square error. In an extreme case, you could achieve a zero sum of square error if every data point existed in its own cluster. This would not be very useful though, would it? So partitioning is about finding the balance between reducing error and finding the right number of clusters.

A commonly used partitioning method is k-means. You will more often see it referred to as k-means clustering. K-means clustering places centers at k locations in the observation space to serve as the means of these k clusters. For example, if you were performing k-means clustering with k = 3, you would place three cluster means somewhere in the data space to set the initial conditions of the analysis.

K-means iteratively steps through the following three primary steps:

  1. Specify the number of clusters, k. Assign their initial locations randomly or in specific locations.
  2. The...
lock icon The rest of the chapter is locked
Register for a free Packt account to unlock a world of extra content!
A free Packt account unlocks extra newsletters, articles, discounted offers, and much more. Start advancing your knowledge today.
Unlock this book and the full library FREE for 7 days
Get unlimited access to 7000+ expert-authored eBooks and videos courses covering every tech area you can think of
Renews at $19.99/month. Cancel anytime
Banner background image