The VARCLUS Procedure 
This example demonstrates how you can cluster variables using the VARCLUS procedure.
The following data are job ratings of police officers. The officers were rated by their supervisors on 13 job skills on a scale from 1 to 9. There is also an overall rating that is not used in this analysis. The following DATA step creates the SAS data set JobRat:
data JobRat; input (Communication_Skills Problem_Solving Learning_Ability Judgement_under_Pressure Observational_Skills Willingness_to_Confront_Problems Interest_in_People Interpersonal_Sensitivity Desire_for_Self_Improvement Appearance Dependability Physical_Ability Integrity Overall_Rating) (1.); datalines; 26838853879867 74758876857667 56757863775875 67869777988997 ... more lines ... 99997899799799 99899899899899 76656399567486 ;
The following statements cluster the variables:
proc varclus data=JobRat maxclusters=3; var Communication_SkillsIntegrity; run;
The DATA= option specifies the SAS data set JobRat as input.
The MAXCLUSTERS=3 option specifies that no more than three clusters be computed. By default, PROC VARCLUS splits and optimizes clusters until all clusters have a second eigenvalue less than one. In this example, the default setting would produce only two clusters, but going to three clusters produces a more interesting result.
The VAR statement lists the numeric variables (Communication_Skills–Integrity) to be used in the analysis. The overall rating is omitted from the list of variables.
Although the VARCLUS procedure displays output for one cluster, two clusters, and three clusters, the following figures display only the final analysis for three clusters.
For each cluster, Figure 94.1 displays the number of variables in the cluster, the cluster variation, the total explained variation, and the proportion of the total variance explained by the variables in the cluster. The variance explained by the variables in a cluster is similar to the variance explained by a factor in common factor analysis, but it includes contributions only from the variables in the cluster rather than from all variables.
The line labeled "Total variation explained" in Figure 94.1 gives the sum of the explained variation over all clusters. The final "Proportion" represents the total explained variation divided by the sum of cluster variation. This value, 0.6715, indicates that about 67% of the total variation in the data can be accounted for by the three cluster components.
Cluster Summary for 3 Clusters  

Cluster  Members  Cluster Variation 
Variation Explained 
Proportion Explained 
Second Eigenvalue 
1  6  6  3.771349  0.6286  0.7093 
2  5  5  3.575933  0.7152  0.5035 
3  2  2  1.382005  0.6910  0.6180 
Figure 94.2 shows how the variables are clustered. Figure 94.2 also displays the Rsquare value of each variable with its own cluster and the Rsquare value with its nearest cluster. The Rsquare value for a variable with the nearest cluster should be low if the clusters are well separated. The last column displays the ratio of / for each variable. Small values of this ratio indicate good clustering.
3 Clusters  Rsquared with  1R**2 Ratio 


Cluster  Variable  Own Cluster 
Next Closest 

Cluster 1  Communication_Skills  0.6403  0.3599  0.5620 
Problem_Solving  0.5412  0.2895  0.6458  
Learning_Ability  0.6561  0.1692  0.4139  
Observational_Skills  0.6889  0.2584  0.4194  
Willingness_to_Confront_Problems  0.6480  0.3402  0.5335  
Desire_for_Self_Improvement  0.5968  0.3473  0.6177  
Cluster 2  Judgement_under_Pressure  0.6263  0.3719  0.5950 
Interest_in_People  0.8122  0.1885  0.2314  
Interpersonal_Sensitivity  0.7566  0.1387  0.2826  
Dependability  0.6163  0.4419  0.6875  
Integrity  0.7645  0.2724  0.3237  
Cluster 3  Appearance  0.6910  0.3047  0.4444 
Physical_Ability  0.6910  0.1871  0.3801 
Figure 94.3 displays the standardized scoring coefficients that are used to compute the first principal component of each cluster. Since each variable is assigned to one and only one cluster, each row of the scoring coefficients contains only one nonzero value.
Standardized Scoring Coefficients  

Cluster  1  2  3 
Communication_Skills  0.212170  0.000000  0.000000 
Problem_Solving  0.195058  0.000000  0.000000 
Learning_Ability  0.214781  0.000000  0.000000 
Judgement_under_Pressure  0.000000  0.221313  0.000000 
Observational_Skills  0.220086  0.000000  0.000000 
Willingness_to_Confront_Problems  0.213452  0.000000  0.000000 
Interest_in_People  0.000000  0.252025  0.000000 
Interpersonal_Sensitivity  0.000000  0.243245  0.000000 
Desire_for_Self_Improvement  0.204848  0.000000  0.000000 
Appearance  0.000000  0.000000  0.601493 
Dependability  0.000000  0.219544  0.000000 
Physical_Ability  0.000000  0.000000  0.601493 
Integrity  0.000000  0.244507  0.000000 
Figure 94.4 displays the cluster structure and the intercluster correlations. The structure table displays the correlation of each variable with each cluster component. The table of intercorrelations contains the correlations between the cluster components.
Cluster Structure  

Cluster  1  2  3 
Communication_Skills  0.800169  0.599909  0.427341 
Problem_Solving  0.735630  0.538017  0.425463 
Learning_Ability  0.810014  0.411316  0.376333 
Judgement_under_Pressure  0.609876  0.791401  0.345399 
Observational_Skills  0.830021  0.407807  0.508305 
Willingness_to_Confront_Problems  0.805002  0.362927  0.583265 
Interest_in_People  0.434138  0.901225  0.387770 
Interpersonal_Sensitivity  0.372371  0.869826  0.287658 
Desire_for_Self_Improvement  0.772554  0.589334  0.494842 
Appearance  0.552003  0.393759  0.831266 
Dependability  0.664778  0.785073  0.574460 
Physical_Ability  0.432590  0.416070  0.831266 
Integrity  0.521876  0.874342  0.477885 
The VARCLUS procedure next displays the summary table of statistics for the cluster history (Figure 94.5). The first three columns give the number of clusters, the total variation explained by clusters, and the proportion of variation explained by clusters, respectively.
As displayed in the first row of Figure 94.5, the variation explained by the first principal component of all the variables is 6.547402, and the proportion of variation explained is 0.5036.
When the number of clusters is two, the total variation explained is 7.967753, and the proportion of variation explained by the two clusters is 0.6129. The larger second eigenvalue of the clusters is 0.937902, so by default, the VARCLUS procedure would stop splitting clusters at this point. But because the MAXCLUSTERS=3 option was specified in this example, the VARCLUS procedure continues to the threecluster solution.
When the number of clusters increases to three, the total variation explained is 8.729286, and the proportion of variation explained by the two clusters is 0.6715. The largest second eigenvalue of the clusters is 0.709323. The statistical improvement from increasing the number of clusters from two to three seems modest, but the interpretability of the three clusters argues for the threecluster solution.
Figure 94.5 also displays the minimum proportion of variance explained by a cluster, the minimum R square for a variable, and the maximum () ratio for a variable. The last quantity is the maximum ratio of the value for a variable’s own cluster to the value for its nearest cluster.
Number of Clusters 
Total Variation Explained by Clusters 
Proportion of Variation Explained by Clusters 
Minimum Proportion Explained by a Cluster 
Maximum Second Eigenvalue in a Cluster 
Minimum Rsquared for a Variable 
Maximum 1R**2 Ratio for a Variable 

1  6.547402  0.5036  0.5036  1.772715  0.2995  
2  7.967753  0.6129  0.5475  0.937902  0.3123  0.8026 
3  8.729286  0.6715  0.6286  0.709323  0.5412  0.6875 
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