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Country Clustering Using Hierarchical Clustering

Country clustering using hierarchial clustering by it's economic and demographic variables

Overview

This is a repository for hierarchial clustering using all countries economic and demographic variables. Hierarchical clustering, also known as hierarchical cluster analysis, is an algorithm that groups similar objects into groups called clusters. The endpoint is a set of clusters, where each cluster is distinct from each other cluster, and the objects within each cluster are broadly similar to each other. In this model, we must try to create model that generates optimum n cluster for the countries. After that, we able to interpretation based on our needs.

Problem Statement

HELP International is an international humanitarian NGO that is committed to fighting poverty and providing the people of backward countries with basic amenities and relief during the time of disasters and natural calamities. It runs a lot of operational projects from time to time along with advocacy drives to raise awareness as well as for funding purposes. After the recent project that included a lot of awareness drives and funding programmes, they have been able to raise around $ 10 million. Now the CEO of the NGO needs to decide how to use this money strategically and effectively. The significant issues that come while making this decision are mostly related to choosing the countries that are in the direst need of aid. And this is where you come in as a data analyst. Your job is to categorise the countries using some socio-economic and health factors that determine the overall development of the country. Then you need to suggest the countries which the CEO needs to focus on the most.

Contents

This model contains :

  • Data Understanding
  • Data Cleaning
  • EDA (Exploratory Data Analysis)
  • Handling Outlier
  • Principal Component Analysis (PCA)
  • Modelling Using Hierarchical Clustering

Result

The number of optimum result that i generate using this model is 2 cluster. I labeled cluster that have higher economic and demographic variables as First World Country and cluster that have lower economic and demographic variables as Third World Country.