Question

How cluster analysis can help organizations in the decision-making process?

Answer 1

cluster analysis is one of the important analysis that is being used in almost all field ofscience in our day to day life. It is very useful particularly in the business environment as ithelps in the understanding of the market segmentation and the targeting of the potentialcustomers to a large extent leading to higher revenue generation for the business. In otherwords, the cluster analysis is biting but the forming of the homogenous group from a group ofa heterogeneous collection of subjects. There are many algorithms that are available to reachthe goal or the objective of the data mining process .however, the application of thesealgorithms will change according to the situation to situation. Cluster analysis helps inselecting the suitable algorithm that is being used in the network.