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K-means cluster analysis is the method of cluster analysis in which from an initial partition of observations into K clusters, each observation in turn is analysed and reassigned, if suitable, to a different cluster in an attempt to optimize some predefined numerical criterion that measures in some sense the 'quality' of cluster solution. Several such clustering criteria have been suggested, but the most usually used arise from considering the features of the within groups, between groups and whole matrices of sums of squares and the cross products (W, B, T) which can be described for every partition of the observations into the particular number of groups. The two most ordinary of the clustering criteria developing from these matrices are given as follows
minimization of trace W
minimization of determinant W
The first of these has tendency to produce the 'spherical' clusters, the second to produce clusters that all have same shape, though this will not necessarily be spherical in shape.
we are testing : Ho: µ=40 versus Ha: µ>40 (a= 0.01) Suppose that the test statistic is z0=2.75 based on a sample size of n=25. Assume that data are normal with mean mu and standa
Collective risk models : The models applied to insurance portfolios which do not create direct reference to the risk characteristics of individual members of the portfolio when des
The Null Hypothesis - H0: There is no autocorrelation The Alternative Hypothesis - H1: There is at least first order autocorrelation Rejection Criteria: Reject H0 if LBQ1 >
It is the art of attempting to exchange something quite small and certain, for something which are large and uncertain. Gambling is big business; in the US, for instance, it is at
Quality-adjusted survival analysis is a method for evaluating the effects of treatment on survival which allows the consideration of quality of life as well as the quantity of lif
You may have the opportunity to buy some electronic components. These components may be reliable (1) or unreliable (2). The potential pro?ts are £10,000 if the components are rel
Generalized method of moments (gmm) is the estimation method popular in econometrics which generalizes the method of the moments estimator. Essentially same as what is known as the
Ha: If hyperlipidemia is believed to be a side effect of second-generation antipsychotics (SGAs), then Hispanic patients with SGAs treatment will have the higher frequency of devel
Buffon's needle problem : A problem proposed and solved by the scientist Comte de Buffon in 1777 which includes determining the probability, p, which a needle of length l will inte
Using World Bank (2004) World Development Indicators; Washington: International Bank for Reconstruction & Development/ The World Bank, located in the reference section of the Learn
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