At each clustering step, two objects or clusters h and i are merged into a new cluster hi, as in previous sections. Since changes occurred only in the groups h, i, and hi, the change in the overall sum of squared errors, A Ehi, may be computed from the changes that occurred in these groups only:

It can be shown that this change depends only on the distance between the centroids of clusters h and i and on their numbers of objects % and n (Jain & Dubes, 1988):

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