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Selecting Number of Clusters in Hierarchical Clustering

One way to select possible number of clusters in hierarchical methods is to identify the relatively large changes in distance as number of clusters change (see table below). When I look at the actual distance measure from the table (clustering history below dendogram), there is a bigger jump from 3 clusters to 4 than from 4 to 5 (smaller), suggesting 4 may be the right decision. However, when you look at the dendogram the jump from 4 to 5 looks bigger. I’m not sure why that is happening. Can anyone please clarify this?image002.pngimage001.png

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