cluster analysis

cluster analysis definition - business

cluster analysis

A statistical tool in which variables (people, events, etc.) are sorted into homogeneous groups, or clusters, such that, for certain criteria, members within a group exhibit more similarities than do members between groups. For example, a study of retailers might cluster companies according to geographic area.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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