Given certain variables, we usually want to find clusters of observations. These clusters should be as different as possible, and should contain "similar" observations inside. Suppose we had the following pairs of values [height=170,weight=50], [height=180,weight=70],[height=190,weight=90] and [height=200,weight=100] and we wanted to cluster them. A reasonable 2-cluster configuration would have the following centroids: [height=175,weight=60],[height=195,weight=95]. Obviously, the first two observations would fall under the first cluster, and the other two should fall under the second cluster. The simplest and most preferred algorithm for clustering is k-means. It works by picking k centroids at random and assigning each observation to the nearest centroid. The mean/center for each centroid is updated, and the procedure is repeated for the other variables...
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