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Frequency Based Index Estimating the Subclusters' Connection Strength

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  • Lukas Pastorek

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.

Suggested Citation

  • Lukas Pastorek, 2017. "Frequency Based Index Estimating the Subclusters' Connection Strength," Papers 1710.07340, arXiv.org, revised Oct 2017.
    • Handle: RePEc:arx:papers:1710.07340
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    References listed on IDEAS

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    1. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    2. Kuan Xu & Lars Osberg, 2001. "How to Decompose Sen-Shorrocks-Thon Poverty Index: A Practitioner’s Guide," Journal of Income Distribution, Ad libros publications inc., vol. 10(1-2), pages 7-7, June.
    3. Shorrocks, Anthony F, 1995. "Revisiting the Sen Poverty Index," Econometrica, Econometric Society, vol. 63(5), pages 1225-1230, September.
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