Full text

Turn on search term navigation

Copyright Faculty of Economics and Management CULS Prague 2013

Abstract

The article deals with two various approaches for data preparation to avoid multicollinearity. The aim of the article is to find similarities among the e-communication level of EU states using hierarchical cluster analysis. The original set of 14 indicators was first reduced on the basis of correlation analysis, while the case of high correlation indicator of higher variability was included in further analysis. Secondly, the data were transformed using principal component analysis while the principal components are poorly correlated. For further analysis, five principal components explaining about 92% of variance were selected. Hierarchical cluster analysis was performed for both based on the reduced data set and the principal component scores. Based on the results found, it can be stated that in the case of using principal component scores as an input variables for cluster analysis with explained proportion high enough (about 92% for in our analysis), the loss of information is lower compared to data reduction on the basis of correlation analysis.

Details

Title
Hierarchical Cluster Analysis - Various Approaches to Data Preparation
Author
Pacáková, Z; Polácková, J
Pages
53-63
Publication year
2013
Publication date
2013
Publisher
Faculty of Economics and Management CULS Prague
e-ISSN
18041930
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
1448057245
Copyright
Copyright Faculty of Economics and Management CULS Prague 2013