Data Mining Concepts and Applications
Six factors behind the sudden rise in popularity of data
mining
1. General recognition of the untapped value in large databases;
2. Consolidation of database records tending toward a single
customer view;
3. Consolidation of databases, including the concept of an
information warehouse;
4. Reduction in the cost of data storage and processing,
providing for the ability to collect and accumulate data;
5. Intense competition for a customer’s attention in an
increasingly saturated marketplace; and
6. The movement toward the de-massification of business
practices
Data Mining Concepts and Applications
Data mining (DM)
A process that uses statistical, mathematical,
artificial intelligence and machine-learning
techniques to extract and identify useful information
and subsequent knowledge from large databases
Data Mining Concepts and Applications
Major characteristics and objectives of data mining
Data is often buried deep within very large databases,
which sometimes contain data from several years;
sometimes the data has been cleansed and consolidated
in a data warehouse
The data mining environment is usually client/server
architecture or a Web-based architecture
Data Mining Concepts and Applications
Major characteristics and objectives of data mining
Sophisticated new tools help to remove the information
ore buried in corporate files or archival public records;
finding it involves massaging and synchronizing the
data to get the right results.
The miner is often an end user, empowered by data drills
and other power query tools to ask ad hoc questions and
obtain answers quickly, with little or no programming skill
Data Mining Concepts and Applications
Major characteristics and objectives of data mining
Striking it rich often involves finding an unexpected
result and requires end users to think creatively
Data mining tools are readily combined with
spreadsheets and other software development tools; the
mined data can be analyzed and processed quickly and
easily
Parallel processing is sometimes used because of the
large amounts of data and massive search efforts
Data Mining Concepts and Applications
How data mining works
Data mining tools find patterns in data and may even
infer rules from them
Three methods are used to identify patterns in data:
1. Simple models
2. Intermediate models
3. Complex models
Data Mining Concepts and Applications
Classification
Supervised induction used to analyze the historical
data stored in a database and to automatically
generate a model that can predict future behavior
Common tools used for classification are:
Neural networks
Decision trees
If-then-else rules
Data Mining Concepts and Applications
Clustering
Partitioning a database into segments in which the
members of a segment share similar qualities
Association
A category of data mining algorithm that
establishes relationships about items that occur
together in a given record
Data Mining Concepts and Applications
Sequence discovery
The identification of associations over time
Visualization can be used in conjunction with data
mining to gain a clearer understanding of many
underlying relationships
Data Mining Concepts and Applications
Regression is a well-known statistical technique
that is used to map data to a prediction value
Forecasting estimates future values based on
patterns within large sets of data
Data Mining Concepts and Applications
Hypothesis-driven data mining
Begins with a proposition by the user, who then
seeks to validate the truthfulness of the proposition
Discovery-driven data mining
Finds patterns, associations, and relationships
among the data in order to uncover facts that were
previously unknown or not even contemplated by
an organization
Data Mining Concepts and Applications
Data mining applications
– Marketing – Computer hardware
– Banking and software
– Retailing and sales – Government and
– Manufacturing and defense
production – Airlines
– Brokerage and – Health care
securities trading – Broadcasting
– Insurance – Police
– Homeland security
Data Mining
Techniques and Tools
Data mining tools and techniques can be classified
based on the structure of the data and the
algorithms used:
Examples of tools used;
Statistical methods
Decision trees
Defined as a root followed by internal nodes. Each node
(including root) is labeled with a question and arcs
associated with each node cover all possible responses
Data Mining
Techniques and Tools
Case-based reasoning
Neural computing
Intelligent agents
Genetic algorithms
Other tools
Rule induction
Data visualization
Data Mining
Techniques and Tools
A general algorithm for building a decision tree:
1. Create a root node and select a splitting attribute.
2. Add a branch to the root node for each split candidate
value and label
3. Take the following iterative steps:
a. Classify data by applying the split value.
b. If a stopping point is reached, then create leaf node and
label it. Otherwise, build another subtree
Data Mining
Techniques and Tools
Gini index
Used in economics to measure the diversity of the
population. The same concept can be used to
determine the ‘purity’ of a specific class as a result
of a decision to branch along a particular
attribute/variable
Data Mining
Techniques and Tools
The ID3 algorithm decision tree approach
Entropy
Measures the extent of uncertainty or randomness in a
data set. If all the data in a subset belong to just one
class, then there is no uncertainty or randomness in
that dataset, therefore the entropy is zero
Data Mining
Techniques and Tools
Cluster analysis for data mining
Cluster analysis is an exploratory data analysis tool for
solving classification problems
The object is to sort cases into groups so that the
degree of association is strong between members of
the same cluster and weak between members of
different clusters
Data Mining
Techniques and Tools
Cluster analysis results may be used to:
Help identify a classification scheme
Suggest statistical models to describe populations
Indicate rules for assigning new cases to classes for
identification, targeting, and diagnostic purposes
Find typical cases to represent classes
Data Mining
Techniques and Tools
Cluster analysis methods
Statistical methods
Optimal methods
Neural networks
Fuzzy logic
Genetic algorithms
Data Mining Project Methodologies
CRISP-DM
Data Mining Project Methodologies
The acronym SEMMA stands for Sample, Explore, Modify, Model, Assess, and
refers to the process of conducting a DM project.
Sample – This stage consists of sampling the data by extracting a portion of a
large data set big enough to contain the significant information, yet small
enough to manipulate quickly;
Explore - this stage consists of the exploration of the data by searching for
unanticipated trends and anomalies in order to gain understanding
and ideas;
Modify - this stage consists of the modification of the data by creating,
selecting, and transforming the variables to focus the model selection process;
Model - this stage consists on modeling the data by allowing the software to
search automatically for a combination of data that reliably predicts a
desired outcome;
Assess - this stage consists on assessing the data by evaluating the usefulness
and reliability of the findings from the DM process and estimate how well it
performs. The SEMMA process offers an easy to understand process, allowing
an organized and adequate development and maintenance of DM projects.
Knowledge Discovery in Databases
Knowledge discovery in databases (KDD)
A comprehensive process of using data mining
methods to find useful information and patterns in
data
Knowledge Discovery in Databases
KDD process
1. Selection
2. Preprocessing
3. Transformation
4. Data mining
5. Interpretation/evaluation
Text Mining
Text mining
Application of data mining to non-structured or less
structured text files. It entails the generation of
meaningful numerical indices from the
unstructured text and then processing these indices
using various data mining algorithms
Text Mining
Text mining helps organizations:
Find the “hidden” content of documents, including
additional useful relationships
Relate documents across previous unnoticed divisions
Group documents by common themes
Text Mining
Applications of text mining
Automatic detection of e-mail spam or phishing
through analysis of the document content
Automatic processing of messages or e-mails to route
a message to the most appropriate party to process that
message
Analysis of warranty claims, help desk calls/reports,
and so on to identify the most common problems and
relevant responses
Text Mining
Applications of text mining
Analysis of related scientific publications in journals
to create an automated summary view of a particular
discipline
Creation of a “relationship view” of a document
collection
Qualitative analysis of documents to detect deception
Text Mining
How to mine text
1. Eliminate commonly used words (stop-words)
2. Replace words with their stems or roots (stemming
algorithms)
3. Consider synonyms and phrases
4. Calculate the weights of the remaining terms
Web Mining
Web mining
The discovery and analysis of interesting and
useful information from the Web, about the Web,
and usually through Web-based tools
Data Mining Project Processes
Web Mining
Web content mining
The extraction of useful information from Web pages
Web structure mining
The development of useful information from the
links included in the Web documents
Web usage mining
The extraction of useful information from the data
being generated through webpage visits, transaction,
etc.
Web Mining
Uses for Web mining:
Determine the lifetime value of clients
Design cross-marketing strategies across products
Evaluate promotional campaigns
Target electronic ads and coupons at user groups
Predict user behavior
Present dynamic information to users
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