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Help understanding cutree used for Dunn Index

I found a way to draw rectangles around whatever cutree cuts, so I think I 
now have a better idea, which is that it looks for the largest k distances 
and cuts there, where k is the # clusters you want defined. Then, I assume 
Dunn index uses the same defined #clusters to determine within vs. across 
cluster similarities (i.e. distances).

If I'm way off please let me know, otherwise thanks for taking the time to 
read my question.

kbrownk