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    Data Mining

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    Allan Komosi
    Data mining involves extracting useful patterns from large amounts of data. It has various applications including classification, clustering, and association rule mining. Classification involves using attributes to predict class labels, like predicting credit risk. Clustering groups similar data points together, like customer segmentation. Association rule mining finds relationships between items, like products commonly purchased together.

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    Data Mining

    Uploaded by

    Allan Komosi
    7 views23 pages
    Data mining involves extracting useful patterns from large amounts of data. It has various applications including classification, clustering, and association rule mining. Classification involves using attributes to predict class labels, like predicting credit risk. Clustering groups similar data points together, like customer segmentation. Association rule mining finds relationships between items, like products commonly purchased together.

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    Data mining involves extracting useful patterns from large amounts of data. It has various applications including classification, clustering, and association rule mining. Classification involves using attributes to predict class labels, like predicting credit risk. Clustering groups similar data points together, like customer segmentation. Association rule mining finds relationships between items, like products commonly purchased together.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views23 pages

    Data Mining

    Uploaded by

    Allan Komosi
    Data mining involves extracting useful patterns from large amounts of data. It has various applications including classification, clustering, and association rule mining. Classification involves using attributes to predict class labels, like predicting credit risk. Clustering groups similar data points together, like customer segmentation. Association rule mining finds relationships between items, like products commonly purchased together.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 23

    Data mining- an Introduction

    Outline
    • Definition, motivation & application
    • Branches of data mining
    • Classification, clustering, Association rule mining
    What Is Data Mining?

    • Data mining (knowledge discovery in databases):


    – Extraction of interesting (non-trivial, implicit, previously unknown
    and potentially useful) information or patterns from data in large
    databases
    Data Mining Definition
    • Finding hidden information in a database
    • Fit data to a model
    • Similar terms
    – Exploratory data analysis
    – Data driven discovery
    – Deductive learning
    Motivation:

    • Data explosion problem

    – Automated data collection tools and mature database technology lead


    to tremendous amounts of data stored in databases, data warehouses
    and other information repositories
    • We are drowning in data, but starving for knowledge!

    • Solution: Data warehousing and data mining

    – Data warehousing and on-line analytical processing

    – Extraction of interesting knowledge (rules, regularities, patterns,


    constraints) from data in large databases
    Why Mine Data? Commercial Viewpoint

    • Lots of data is being collected


    and warehoused
    – Web data, e-commerce
    – purchases at department/
    grocery stores
    – Bank/Credit Card
    transactions

    • Computers have become cheaper and more powerful


    • Competitive Pressure is Strong
    – Provide better, customized services for an edge (e.g. in Customer
    Relationship Management)
    Why Mine Data? Scientific Viewpoint

    • Data collected and stored at


    enormous speeds (GB/hour)
    – remote sensors on a satellite
    – telescopes scanning the skies
    – microarrays generating gene
    expression data
    – scientific simulations
    generating terabytes of data
    • Traditional techniques infeasible for raw data
    • Data mining may help scientists
    – in classifying and segmenting data
    – in Hypothesis Formation
    Query Examples
    • Database
    – Find all credit applicants with last name of Smith.
    - Identify customers who have purchased more than $10,000 in the
    last month.
    – Find all customers who have purchased milk

    • Data Mining
    – Find all credit applicants who are poor credit risks. (classification)
    – Identify customers with similar buying habits. (Clustering)

    – Find all items which are frequently purchased with milk. (association
    rules)
    Data Mining: Classification Schemes

    • Decisions in data mining


    – Kinds of databases to be mined
    – Kinds of knowledge to be discovered
    – Kinds of techniques utilized
    – Kinds of applications adapted
    • Data mining tasks
    – Descriptive data mining
    – Predictive data mining
    Decisions in Data Mining

    • Databases to be mined
    – Relational, transactional, object-oriented, object-relational, active,
    spatial, time-series, text, multi-media, heterogeneous, legacy, WWW,
    etc.
    • Knowledge to be mined
    – Characterization, discrimination, association, classification, clustering,
    trend, deviation and outlier analysis, etc.
    – Multiple/integrated functions and mining at multiple levels
    • Techniques utilized
    – Database-oriented, data warehouse (OLAP), machine learning,
    statistics, visualization, neural network, etc.
    • Applications adapted
    – Retail, telecommunication, banking, fraud analysis, DNA mining, stock market
    analysis, Web mining, Weblog analysis, etc.
    Data Mining Tasks

    • Prediction Tasks
    – Use some variables to predict unknown or future values of other
    variables
    • Description Tasks
    – Find human-interpretable patterns that describe the data.

    Common data mining tasks


    – Classification [Predictive]
    – Clustering [Descriptive]
    – Association Rule Discovery [Descriptive]
    – Sequential Pattern Discovery [Descriptive]
    – Regression [Predictive]
    – Deviation Detection [Predictive]
    Data Mining Models and Tasks
    Classification: Definition

    • Given a collection of records (training set )


    – Each record contains a set of attributes, one of the attributes is the
    class.
    • Find a model for class attribute as a function of the
    values of other attributes.
    • Goal: previously unseen records should be assigned a
    class as accurately as possible.
    – A test set is used to determine the accuracy of the model. Usually, the
    given data set is divided into training and test sets, with training set
    used to build the model and test set used to validate it.
    Classification: Application 1

    • Direct Marketing
    – Goal: Reduce cost of mailing by targeting a set of
    consumers likely to buy a new cell-phone product.
    – Approach:
    • Use the data for a similar product introduced before.
    • We know which customers decided to buy and which decided
    otherwise. This {buy, don’t buy} decision forms the class attribute.
    • Collect various demographic, lifestyle, and company-interaction
    related information about all such customers.
    – Type of business, where they stay, how much they earn, etc.
    • Use this information as input attributes to learn a classifier model.
    Classification: Application 2

    • Fraud Detection
    – Goal: Predict fraudulent cases in credit card transactions.
    – Approach:
    • Use credit card transactions and the information on its
    account-holder as attributes.
    – When does a customer buy, what does he buy, how often he pays on
    time, etc
    • Label past transactions as fraud or fair transactions. This forms the
    class attribute.
    • Learn a model for the class of the transactions.
    • Use this model to detect fraud by observing credit card
    transactions on an account.
    Classification: Application 3

    • Customer Attrition/Churn:
    – Goal: To predict whether a customer is likely to be lost to a
    competitor.
    – Approach:
    • Use detailed record of transactions with each of the past and
    present customers, to find attributes.
    – How often the customer calls, where he calls, what time-of-the day
    he calls most, his financial status, marital status, etc.
    • Label the customers as loyal or disloyal.
    • Find a model for loyalty.
    Classification: Application 4

    • Sky Survey Cataloging


    – Goal: To predict class (star or galaxy) of sky objects,
    especially visually faint ones, based on the telescopic
    survey images (from Palomar Observatory).
    – 3000 images with 23,040 x 23,040 pixels per image.
    – Approach:
    • Segment the image.
    • Measure image attributes (features) - 40 of them per object.
    • Model the class based on these features.
    • Success Story: Could find 16 new high red-shift quasars, some of
    the farthest objects that are difficult to find!
    Clustering Definition

    • Given a set of data points, each having a set of


    attributes, and a similarity measure among them,
    find clusters such that
    – Data points in one cluster are more similar to one another.
    – Data points in separate clusters are less similar to one
    another.
    • Similarity Measures:
    – Euclidean Distance if attributes are continuous.
    – Other Problem-specific Measures.
    Clustering: Application 1

    • Market Segmentation:
    – Goal: subdivide a market into distinct subsets of customers
    where any subset may conceivably be selected as a market
    target to be reached with a distinct marketing mix.
    – Approach:
    • Collect different attributes of customers based on their
    geographical and lifestyle related information.
    • Find clusters of similar customers.
    • Measure the clustering quality by observing buying patterns of
    customers in same cluster vs. those from different clusters.
    Clustering: Application 2

    • Document Clustering:
    – Goal: To find groups of documents that are similar to each
    other based on the important terms appearing in them.
    – Approach: To identify frequently occurring terms in each
    document. Form a similarity measure based on the
    frequencies of different terms. Use it to cluster.
    – Gain: Information Retrieval can utilize the clusters to
    relate a new document or search term to clustered
    documents.
    ASSOCIATION RULE MINING
    Association Rule Discovery: Definition

    • Given a set of records each of which contain some number of


    items from a given collection;
    – Produce dependency rules which will predict occurrence of an item
    based on occurrences of other items.

    Rules Discovered:
    {Milk} --> {Coke}
    {Diaper, Milk} --> {Beer}
    Association Rule Discovery: Application 2

    • Supermarket shelf management.


    – Goal: To identify items that are bought together by
    sufficiently many customers.
    – Approach: Process the point-of-sale data collected with
    barcode scanners to find dependencies among items.
    – A classic rule --
    • If a customer buys diaper and milk, then he is very likely to buy
    beer:

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