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# Cluster Analysis and Apriori Analysis

**Data Analysis(Cluster Analysis)**

Included with this assignment is an Excel spreadsheet that contains data with two dimension values.

The purpose of this assignment is to demonstrate steps performed in a K-Means Cluster analysis.

Review the "k-MEANS CLUSTERING ALGORITHM" section in Chapter 4 of the Sharda et. al. textbook for additional background.

Use Excel to perform the following data analysis.

- Plot the data on a scatter plot.
- Determine the ideal number of clusters.
- Choose random center points (centroids) for each cluster.
- Using a standard distance formula measure the distance from each data point to each center point.
- Assign each data point to an initial cluster region based on closeness.
- For each cluster calculate new center points.
- Repeat steps 4 through 6 once.

You will use Excel to help with calculations, but only standard functions should be used (i.e. don't use a plug-in to perform the analysis for you.) You need to show your work doing this analysis the long way. **If you were to repeat steps 4 through 6, what will likely happen with the cluster centroids? ** The rubric for this assignment can be viewed when clicking on the assignment link.

Here is a link to an example spreadsheet using a smaller data set. It contains two tabs. The first tab is the raw data. The second tab contains the analysis that was performed. Make sure that you use a different starting center points from the example.

**Data Analysis(Apriori Analysis)**

Included with this assignment is an Excel spreadsheet containing customer receipts.

The purpose of this assignment is to demonstrate steps performed in an Apriori analysis (i.e. Market Basket analysis).

Review the "APRIORI ALGORITHM" section of Chapter 4 of the Sharda et. al. textbook for additional background.

Use Excel to perform this analysis.

- List the SKU which was purchased the most.
- List the two SKUs that were purchased most frequently
**together**. - List the three SKUs that were purchased most frequently
**together.** - List the four SKUs that were purchased most frequently
**together.**

Make note of any pattern that you noticed while performing the analysis. As a retail business owner, how would you use the results from this analysis? The rubric for this assignment can be viewed when clicking on the assignment link.