Tools for Segmentation

Question 1

purpose of Cluster Analysis

Answer 1

to form segments

Question 2

purpose of discriminant analysis

Answer 2

to describe segments

Question 3

How things are clustered in K Means

Answer 3

Randomly Assign a point to the nearest cluster/centroid and then recompute the center of the cluster. repeat

Question 4

In Hierarchical

Answer 4

Unknown number of clusters. Join the two items that are the closest, then join the next two closest points. Either join them to form a new group or attach them to an existing cluster.

Question 5

How does Classification analysis relate to Cluster and Discriminant analysis

Answer 5

Cluster analysis +Discriminant analysis imply a predictive rule for Classification.

Use predictive rule on new discriminant data to predict cluster assignments