Categorical variables with lots of categories can be clustered using Greenacre's method. Earlier we did it by hand using a simple example that displayed quasi-complete separation. In this topic we will use PROC CLUSTER to implement Greenacre's method when doing it by hand is impossible.
Introduction
A repeat of the simple example using PROC CLUSTER for Greenacre's method
The branch variable on the develop data set
The cluster step for the branch variable
Find the optimum number of clusters
Define indicator variables for cluster membership