Organize continuing growth of dynamic unstructured documents is the major challenge to the field experts. Handling of such unorganized documents causes more expensive. Clustering of such dynamic documents helps to reduce the cost. Document clustering by analysing the keywords of the documents is one the best method to organize the unstructured dynamic documents. Statistical analysis is the best adaptive method to extract the keywords from the documents. In this paper an algorithm was proposed to cluster the documents. It has two parts, first part extracts the keywords using statistical method and the second part construct the clusters by keyword using agglomerative method. This proposed algorithm gives more than 90% of accuracy.
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