Cluster Analysis

K Means Clustering in R Studio

Steps in K means algorithm

Input: Number of clusters to be formed as per the business case Step1: Assume K centroids (for k clusters) Step2: Compute the Euclidian distance of each object with these centroids Step3: Assign the objects to clusters with the shortest distance Step4: Compute the new centroid(mean) of each cluster based on each objects clusters assigned Step5: Repeat the step2 - step4 till we get convergence

Final Output with 2 clusters from the huge dataset