I found this post to be a useful overview of the fundamentals of cluster analysis, covering more of the underlying principles of clustering methods generally rather than any particular algorithm. It also includes a toy example of creating a clustered, random dataset in R, although you'll find more flexible, dedicated tools to create random clusters under various models in the built-in spatial package. R has a strong and varied suite of packages for detecting clusters in various kinds of datasets, too.
Geet Duggal: Is clustering just an art?
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