Frequency Based Index Estimating the Subclusters' Connection Strength

TL;DR

This paper introduces a frequency coefficient based on the SST poverty index to estimate the connection strength between sub-clusters, aiding in natural cluster detection and market segmentation.

Contribution

It proposes a novel frequency coefficient derived from the SST index for assessing sub-cluster connection strength, enhancing cluster analysis methods.

Findings

Effective in artificial datasets with known parameters

Complementary to U-matrix visualization

Provides insights into natural cluster structures

Abstract

In this paper, a frequency coefficient based on the Sen-Shorrocks-Thon (SST) poverty index notion is proposed. The clustering SST index can be used as the method for determination of the connection between similar neighbor sub-clusters. Consequently, connections can reveal existence of natural homogeneous. Through estimation of the connection strength, we can also verify information about the estimated number of natural clusters that is necessary assumption of efficient market segmentation and campaign management and financial decisions. The index can be used as the complementary tool for the U-matrix visualization. The index is tested on an artificial dataset with known parameters and compared with results obtained by the Unified-distance matrix method.