See how natural groupings such as clinic versus retail create problems due to self selection.
- One of the reasons that so-called big data…can make analysis difficult, is that it's so easy…to collect observations on tens…or hundreds of thousands of people.…For example, suppose that all those people are customers.…It's often useful to categorize those people…into different classes or groups or clusters…and you may have available some variables…that enable you to group those people.…You may know their state of residence, or their zip code…or their general income level,…or whether they have purchased goods from you before.…
But it's entirely possible that none of those variables…is useful to you as a means of classifying the customers.…Just knowing their states of residence…doesn't necessarily put you in a position to sell them more.…Often categories that you did not expect…are hidden in the mass of data,…especially when online retailing…is starting to swamp bricks and mortar.…A relatively new method of categorizing people…or other living beings, or even objects…is called cluster analysis.…The initial writing on cluster analysis dates to the 1960s,…
In this course, Conrad Carlberg explains how to carry out cluster analysis and principal components analysis using Microsoft Excel, which tends to show more clearly what's going on in the analysis. Then he explains how to carry out the same analysis using R, the open-source statistical computing software, which is faster and richer in analysis options than Excel. Plus, he walks through how to merge the results of cluster analysis and factor analysis to help you break down a few underlying factors according to individuals' membership in just a few clusters.
- Reviewing the problems created by an overabundance of data
- Understanding the rationale for clustering and principal components analysis
- Using Excel to extract principal components
- Using R to extract principal components
- Using R for cluster analysis
- Using Excel for cluster analysis
- Setting up confusion tables in Excel
- Using cluster analysis and factor analysis in concert