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A progress report on where I'm at on this question, with thanks to Lalit 
Garg, Richard Sedcole, Stephen Senn, Brett Houlding, Brendan Murphy, 
Allan Reese and Bill Venables.

Lalit Garg refers to some of his joint work on clustering classified 
survival data including

1. Garg L, McClean SI, Meenan BJ, Millard PH (2011). Phase-type survival 
trees and mixed distribution survival trees for clustering patients’ 
hospital length of stay. INFORMATICA. 22(1): 57-72.      and
2. Garg L., McClean SI, Barton M, Meenan BJ and Fullerton K (2010). The 
extended mixture distribution survival tree based analysis for 
clustering and patient pathway prognostication in a stroke care unit. 
International Journal of Information Sciences and Application. 2(4): 
671-675.

I am always interested in mixture modelling approaches so I will try to 
look at these papers, though the type of data is a lot different from 
that I am thinking about. Brendan Murphy also mentions model-based 
clustering. I am very keen on model-based clustering but I actually 
think that this situation may be more amenable to a more traditional 
approach.

Richard Sedcole suggests that Canonical Variate Analysis or Discriminant 
Function Analysis would be a good approach. this indeed was the approach 
that I had most in mind before asking anzstat and allstat.

Brett Houlding sent me a pre-print about Constrained Clustering. My 
first thought was that this was not really what I was interested in but 
in fact it may be. I will trickle out a few more details about the 
application. I am considering the clustering of different geological 
layers at a number of sites based on geochemical composition, with 
several observations per layer-within-site. Now there are indeed some 
constraints: one would not wish to cluster together two classes from 
different layers at the same site, the interest is in which classes from 
different sites cluster.

Stephen Senn referred me to the work of David Wishart on the clustering 
of single-malt whisky by flavour. Unfortunately most of this work seems 
to be in books that I don't have ready access too, though I have ordered 
his 2006 book for our Library.

Allan Reese suggests Confirmatory Factor Analysis. In the clustering 
situation the latent variables are discrete rather than continuous so 
I'm not sure that CFA (let me admit, I've forgotten what that does!) 
would be the way to go.

Bill Venables offers the following suggestions, which I will repeat for 
the benefit of allstat:
Isn't this just a problem of clustering the clusters?  In my naivete I 
would have thought all you need to do is
a) define a distance measure between groups, (as opposed to the primary 
entities), that reflects the importance you put on the separations that 
exist already,
b) define an overall objective you want the clustering to achieve (e.g. 
as an objective function to optimise, that balances costs and benefits) and
c) employ some appropriate clustering algorithm to see if there is any 
advantage in merging any of your existing groups.  Which one to use will 
depend on your circumstances.  (At this stage it might sometimes be 
useful to look at a hierarchical clustering of your groups first, rather 
than to go for a hard clustering straightaway - or it may not!)

My own thinking has evolved towards the following modest proposal (which 
has some similarity to Bill's ideas, but which, I swear, was arrived at 
independently.

1. Form a 'distance' matrix between the groups based on pairwise 
Mahalanobis distance w.r.t. the pooled variance-covariance matrix.

2. Begin the hierarchical clustering process by merging the two groups 
the smallest distance apart.

3. There is no need to bother about linkage methods, the changed 
pairwise Mahalanobis distances are recomputed.

4.  Continue merging until things you know shouldn't be merged start 
getting merged.

5. Meditate on dendrogram.

Further comments welcome.

Regards,  Murray Jorgensen


Cheers,  Murray
-- 
Dr Murray Jorgensen      http://www.stats.waikato.ac.nz/Staff/maj.html
Department of Statistics, University of Waikato, Hamilton, New Zealand
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