How Hierarchical Clustering Works

Part 1 of Hiearchical Clustering by Dr. Alvin Ang

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Dr. Alvin Ang

Hierarchical Clustering

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A Dendrogram showing Customers spending across Grocery, Mlik, Fresh Meat etc…

How to Read a Dendrogram for Hierarchical Clustering (with Multiple Features)

1. Understanding the Structure of the Dendrogram

• Vertical Lines: Represent the Euclidean distances between clusters or data points.
• Short Vertical Lines: Show that some customers have very similar spending patterns across all features.
• Example: The customers at points 0 and 2 in the dendrogram have a short vertical line, indicating they spend similarly.
• Long Vertical Lines: Indicate that some customers are very different in their spending.
• Example: The larger gap between cluster (0, 2) and…