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\subsection{Hierarchical Clustering using Ward's method}
Hierarchical clustering is yet another unsupervised algorithm for determining the clustered groups, yet it uses a much simpler method, namely merging the two closest clusters, and updating the proximity matrix to reflect the proximity between the new cluster and the original clusters, until there is only one large cluster left. For the cars dataset, Ward's
method, or minimizing method (i.e. the method which minimizes the
sum variance of
squared the distance
of the observations to the
new center after merging two clusters, clusters centers) was used with an Euclidean metric as the
similarity distance measure between the
observations. observations and the clusters centers. A dendrogram showing the results of this clustering method can be seen in
the following figure. Figure \ref{DendrogramPCAData}.