Data mining algorithm: Clustering

Clustering works by plotting out each case as dots on multiple axis based on the dimension defined by the SSAS developer. Then the system proceed to group together points that are close to each other. In this model you are not trying to predict anything, rather just having an overview of what are some of the associations between dimension values.



In the images above the sample is divided into 7 clusters each with a breakdown on attribute value for each predefined attributes. Here we can see that there is probably an association between the ones who are single, 0 for class and 000 for industry from Cluster 1 which fits into the sentence (Those who are single belongs to class 0 and industry 000). It is a good way to do marketing research with Clustering, then we can maybe draw some conclusion on "Those who are between 40 and 50 and owns a house are also very likely to own a car.", then a company who does car related business would be able to identify potential targets for their marketing campaign.

For more information: http://technet.microsoft.com/en-us/library/ms174879.aspx