What suggested guidelines researchers can use when deciding on the number of clusters?
What will be an ideal response?
Although there are no hard and fast rules, some guidelines are available:
? Theoretical, conceptual, or practical considerations may suggest a certain number of clusters. For example, if the purpose of clustering is to identify market segments, management may want a particular number of clusters.
? In hierarchical clustering, the distances at which clusters are combined can be used as criteria.
? In nonhierarchical clustering, the ratio of total within-group variance to between group variance can be plotted against the number of clusters.
? The relative sizes of the clusters should be meaningful.
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