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A NOTE ON PROCEDURES FOR TESTING THE QUALITY OF A CLUSTERING OF A SET OF OBJECTS
Authors:Glenn W. Milligan  Vijay Mahajan
Abstract:Despite the increased application of cluster analysis in decision sciences, few attempts have been made to derive hypothesis-testing procedures for the evaluation of clustering solutions. In fact, the present paper shows that at least one such attempt failed to specify a meaningful sampling distribution for the test procedure. An alternative index based on the concept of point-biserial correlation is proposed as a possible recovery measure. The index is subsequently used to form the basis of a valid statistical test for the existence of cluster structure.
Keywords:Statistical Techniques  Market Segmentation
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