Join Conrad Carlberg for an in-depth discussion in this video Using Excel for cluster analysis, part of Data Reduction Techniques Using Excel and R: Business Analytics Deep Dive.
- [Narrator] The exercise files for this course…include an Excel work book named…k-means Cluster Analysis.xlsm.…It does cluster analysis using the k-means approach.…It's a little easier to use the Excel work book…than to use R's k-means function.…On the other hand, it's quite a bit slower than R…if you have many records to analyze,…say several hundred or more.…You don't have as much control over how the clusters…are established using the Excel work book…as you do if you use R's k-means function,…but you may well get some information…from the Excel analysis that you don't…get directly from R's k-means function.…
To use the Excel work book to do a cluster analysis,…you should first open the work book named…K-means Cluster Analysis.xlsm,…then open the work book that contains your data.…You'll find the k-means command…in the menu commands group in the Add-ins tab.…One of the items, perhaps the only item on the add ins…tab will be the k-means command.…Its presence on that tab simply indicates that you have…opened the k-means cluster analysis Excel work book.…
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