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CLUSTERING                                                   229


                        14000
                        12000

                        10000

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                           0                             Rio
                                Bangkok  Beijing  Tokyo  Cairo  London  Moscow  Honolulu  Los Angeles  New York  Capetown  Santiago  Melbourne





            Figure 7.4  Hierarchical clustering of the data in Table 7.1




              Given a set of N S objects z i to be clustered, and an N S   N S distance
            matrix between these objects, the hierarchical clustering involves the
            following steps:

            Algorithm 7.2: Hierarchical clustering

            1. Assign each object to its own cluster, resulting in N S clusters, each
               containing just one object. The initial distances between all clusters
               are therefore just the distances between all objects.
            2. Find the closest pair of clusters and merge them into a single cluster,
               so that the number of clusters reduces by one.
            3. Compute the distance between the new cluster and each of the old
               clusters, where the distance between two clusters can be defined in a
               number of ways (see below).
            4. Repeat steps 2 and 3 until all items are clustered into a single cluster
               of size N S , or until a predefined number of clusters K is achieved.

            In step 3 it is possible to compute the distances between clusters in
            several different ways. We can distinguish single-link clustering, aver-
            age-link clustering and complete-link clustering. In single-link clus-
            tering, the distance between two clusters C i and C j is defined as the
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