This paper describes an algorithm for classifying elements with binary
valued attributes so that the classes are similar. The problem chosen
for discussing is that of allocating students to groups within an edu
cational setting. Individual students are described by a set of binary
-valued attributes. The objective of the algorithm is to create workin
g groups which are similar to each other in terms of their mix of stud
ent attributes. The algorithm uses an information theory measure. The
paper also compares the performance of the algorithm to a goal program
ming formulation of the problem.