SAS/STAT Software; The VARCLUS procedure divides a set of numeric variables into disjoint or hierarchical clusters. Associated with each cluster is a linear combination of the variables in the cluster. This linear combination can be either the first principal component or the centroid component. The following are highlights of the VARCLUS procedure’s features: attempts to maximize the variance that is explained by the cluster components, summed over all the clusters; cluster components are oblique; enables you to analyze either the correlation or the covariance matrix; creates an output data set that can be used with the SCORE procedure to compute component scores for each cluster; creates an output data set that can be used with the TREE procedure to draw a tree diagram of hierarchical clusters; enables you to base the clustering on partial correlations; performs BY group processing, which enables you to obtain separate analyses on grouped observations performs weighted analysis; creates a SAS data set that corresponds to any output table; automatically displays a dendrogram (tree diagram of hierarchical clusters) by using ODS Graphics.

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