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I have a training data set that I've done some cluster analysis on using R's pvclust package. I have a dendrogram of the results and am currently looking for the best way to use the information to create a model(s) of the data. Can anyone recommend a resource to walk me thru the process of going from clustering to predictive model? In other words, how do I read a dendrogram to make the most appropriate model(s).

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Some clarification might be helpful. You say want to build a 'predictive model', what is it you want to predict? Also, what constitute the data that went into the CA? A set of explanatory variables, a set of response variables, all the variables you had access to, etc. – gung Nov 18 '11 at 22:09
The training data was missing the variable I wanted to predict (a credit event/failure) and I ran the CA on everything else (age, income, lateness, etc.) The dendrogram normalized the data so that it is on a 0-3 scale. I'm trying to understand what the dendrogram means. I basically want to create a model that better predicts whether a person will have a credit failure. – screechOwl Nov 18 '11 at 22:50

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up vote 2 down vote accepted

One way to proceed is to put the dummies of the clusters & run the regression. For example if there are n cluster groups, then (n-1) cluster dummies & run the regression using these dummies.

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Do you have a link that would describe how to do this in detail? – screechOwl Nov 21 '11 at 18:23
Sorry Acesnap I don't have the link. But it's pretty easy to do. – Ari Nov 21 '11 at 21:27

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