The term cluster analysis involves a number of different methods and algorithms to group objects of similar type into related categories. By using this exploratory tool of data analysis, after doing a thorough sorting – different objects having the maximum association is being put in the same group and otherwise in other group. Cluster analysis can be used to determine a specific pattern in data without further explanation or interpretation.
There are a number of diverse approaches that can be utilized to perform an exercise on a cluster analysis. This method could be a Hierarchical method which further is categorized in either agglomerative method or divisive method. Other approach is through non-hierarchical methods. The data used in cluster analysis can be categorical, interval or ordinal. There can be complication, if analysis is being carried out through mixture of different types of variable.