Data Mining:

Concepts and Techniques

December 7, 2021 Data Mining: Concepts and Techniques 1

 Necessity Is the Mother of Invention
 Data explosion problem
 Automated data collection tools and mature database technology
lead to tremendous amounts of data accumulated and/or to be
analyzed 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

 Mining interesting knowledge (rules, regularities, patterns,

constraints) from data in large databases
December 7, 2021 Data Mining: Concepts and Techniques 2
 Evolution of Database Technology
 1960s:
 Data collection, database creation, IMS and network DBMS
 1970s:
 Relational data model, relational DBMS implementation
 1980s:
 RDBMS, advanced data models (extended-relational, OO, deductive, etc.)
 Application-oriented DBMS (spatial, scientific, engineering, etc.)
 1990s:
 Data mining, data warehousing, multimedia databases, and Web
databases
 2000s
 Stream data management and mining
 Data mining with a variety of applications
 Web technology and global information systems
December 7, 2021 Data Mining: Concepts and Techniques 3
 What Is Data Mining?
 Data mining (knowledge discovery from data)
 Extraction of interesting (non-trivial, implicit, previously
unknown and potentially useful) patterns or knowledge from
huge amount of data
 Data mining: a misnomer?
 Alternative names
 Knowledge discovery (mining) in databases (KDD), knowledge
extraction, data/pattern analysis, data archeology, data
dredging, information harvesting, business intelligence, etc.
 Watch out: Is everything “data mining”?
 (Deductive) query processing.
 Expert systems or small ML/statistical programs

December 7, 2021 Data Mining: Concepts and Techniques 4

 Why Data Mining?—Potential Applications

 Data analysis and decision support

 Market analysis and management
 Target marketing, customer relationship management (CRM),
market basket analysis, cross selling, market segmentation
 Risk analysis and management
 Forecasting, customer retention, improved underwriting,
quality control, competitive analysis
 Fraud detection and detection of unusual patterns (outliers)
 Other Applications
 Text mining (news group, email, documents) and Web mining
 Stream data mining
 DNA and bio-data analysis
December 7, 2021 Data Mining: Concepts and Techniques 5
 Market Analysis and Management
 Where does the data come from?
 Credit card transactions, loyalty cards, discount coupons, customer complaint calls, plus (public)
lifestyle studies
 Target marketing
 Find clusters of “model” customers who share the same characteristics: interest, income level,
spending habits, etc.
 Determine customer purchasing patterns over time
 Cross-market analysis
 Associations/co-relations between product sales, & prediction based on such association
 Customer profiling
 What types of customers buy what products (clustering or classification)
 Customer requirement analysis
 identifying the best products for different customers
 predict what factors will attract new customers
 Provision of summary information
 multidimensional summary reports
 statistical summary information (data central tendency and variation)

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 Corporate Analysis & Risk Management

 Finance planning and asset evaluation

 cash flow analysis and prediction
 contingent claim analysis to evaluate assets
 cross-sectional and time series analysis (financial-ratio, trend
analysis, etc.)
 Resource planning
 summarize and compare the resources and spending
 Competition
 monitor competitors and market directions
 group customers into classes and a class-based pricing procedure
 set pricing strategy in a highly competitive market

December 7, 2021 Data Mining: Concepts and Techniques 7

 Fraud Detection & Mining Unusual Patterns

 Approaches: Clustering & model construction for frauds, outlier analysis

 Applications: Health care, retail, credit card service, telecomm.
 Auto insurance: ring of collisions
 Money laundering: suspicious monetary transactions
 Medical insurance
 Professional patients, ring of doctors, and ring of references
 Unnecessary or correlated screening tests
 Telecommunications: phone-call fraud
 Phone call model: destination of the call, duration, time of day or
week. Analyze patterns that deviate from an expected norm
 Retail industry
 Analysts estimate that 38% of retail shrink is due to dishonest
employees
 Anti-terrorism

December 7, 2021 Data Mining: Concepts and Techniques 8

 Other Applications

 Sports
 IBM Advanced Scout analyzed NBA game statistics (shots
blocked, assists, and fouls) to gain competitive advantage for
New York Knicks and Miami Heat
 Astronomy
 JPL and the Palomar Observatory discovered 22 quasars with the
help of data mining
 Internet Web Surf-Aid
 IBM Surf-Aid applies data mining algorithms to Web access logs
for market-related pages to discover customer preference and
behavior pages, analyzing effectiveness of Web marketing,
improving Web site organization, etc.
December 7, 2021 Data Mining: Concepts and Techniques 9
 Data Mining: A KDD Process

 Data mining—core of Pattern Evaluation

knowledge discovery
process
Data Mining

Task-relevant Data

Data Selection
Warehouse
Data Cleaning

Data Integration

Databases
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 Steps of a KDD Process

 Learning the application domain

 relevant prior knowledge and goals of application
 Creating a target data set: data selection
 Data cleaning and preprocessing: (may take 60% of effort!)
 Data reduction and transformation
 Find useful features, dimensionality/variable reduction, invariant
representation.
 Choosing functions of data mining
 summarization, classification, regression, association, clustering.
 Choosing the mining algorithm(s)
 Data mining: search for patterns of interest
 Pattern evaluation and knowledge presentation
 visualization, transformation, removing redundant patterns, etc.
 Use of discovered knowledge
December 7, 2021 Data Mining: Concepts and Techniques 11
 Data Mining and Business Intelligence
Increasing potential
to support
business decisions End User
Making
Decisions

Data Presentation Business

Analyst
Visualization Techniques
Data Mining Data
Information Discovery Analyst

Data Exploration
Statistical Analysis, Querying and Reporting

Data Warehouses / Data Marts

OLAP, MDA DBA
Data Sources
Paper, Files, Information Providers, Database Systems, OLTP
December 7, 2021 Data Mining: Concepts and Techniques 12
 Architecture: Typical Data Mining System

Graphical user interface

Pattern evaluation

Data mining engine

Knowledge-base
Database or data
warehouse server
Data cleaning & data integration Filtering

Data
Databases Warehouse

December 7, 2021 Data Mining: Concepts and Techniques 13

 Data Mining: On What Kinds of Data?
 Relational database
 Data warehouse
 Transactional database
 Advanced database and information repository
 Object-relational database

 Spatial and temporal data

 Time-series data

 Stream data

 Multimedia database

 Heterogeneous and legacy database

 Text databases & WWW

December 7, 2021 Data Mining: Concepts and Techniques 14

 Data Mining Functionalities
 Concept description: Characterization and discrimination
 Generalize, summarize, and contrast data characteristics, e.g., dry
vs. wet regions
 Association (correlation and causality)
 Diaper  Beer [0.5%, 75%]
 Classification and Prediction
 Construct models (functions) that describe and distinguish classes
or concepts for future prediction
 E.g., classify countries based on climate, or classify cars based
on gas mileage
 Presentation: decision-tree, classification rule, neural network
 Predict some unknown or missing numerical values
December 7, 2021 Data Mining: Concepts and Techniques 15
 Data Mining Functionalities (2)
 Cluster analysis
 Class label is unknown: Group data to form new classes, e.g.,

cluster houses to find distribution patterns

 Maximizing intra-class similarity & minimizing interclass similarity

 Outlier analysis
 Outlier: a data object that does not comply with the general

behavior of the data

 Noise or exception? No! useful in fraud detection, rare events

analysis
 Trend and evolution analysis
 Trend and deviation: regression analysis

 Sequential pattern mining, periodicity analysis

 Similarity-based analysis

 Other pattern-directed or statistical analyses

December 7, 2021 Data Mining: Concepts and Techniques 16
 Are All the “Discovered” Patterns Interesting?

 Data mining may generate thousands of patterns: Not all of them

are interesting
 Suggested approach: Human-centered, query-based, focused mining
 Interestingness measures
 A pattern is interesting if it is easily understood by humans, valid on new
or test data with some degree of certainty, potentially useful, novel, or
validates some hypothesis that a user seeks to confirm
 Objective vs. subjective interestingness measures
 Objective: based on statistics and structures of patterns, e.g., support,
confidence, etc.
 Subjective: based on user’s belief in the data, e.g., unexpectedness,
novelty, actionability, etc.

December 7, 2021 Data Mining: Concepts and Techniques 17

 Can We Find All and Only Interesting Patterns?

 Find all the interesting patterns: Completeness

 Can a data mining system find all the interesting patterns?
 Heuristic vs. exhaustive search
 Association vs. classification vs. clustering
 Search for only interesting patterns: An optimization problem
 Can a data mining system find only the interesting patterns?
 Approaches
 First general all the patterns and then filter out the
uninteresting ones.
 Generate only the interesting patterns—mining query
optimization
December 7, 2021 Data Mining: Concepts and Techniques 18
 Data Mining: Confluence of Multiple Disciplines

Database
Statistics
Systems

Machine
Learning
Data Mining Visualization

Algorithm Other
Disciplines

December 7, 2021 Data Mining: Concepts and Techniques 19

 Data Mining: Classification Schemes

 General functionality
 Descriptive data mining
 Predictive data mining
 Different views, different classifications
 Kinds of data to be mined
 Kinds of knowledge to be discovered
 Kinds of techniques utilized
 Kinds of applications adapted

December 7, 2021 Data Mining: Concepts and Techniques 20

 Multi-Dimensional View of Data Mining
 Data to be mined
 Relational, data warehouse, transactional, stream, object-
oriented/relational, active, spatial, time-series, text, multi-media,
heterogeneous, legacy, WWW
 Knowledge to be mined
 Characterization, discrimination, association, classification,
clustering, trend/deviation, outlier analysis, etc.
 Multiple/integrated functions and mining at multiple levels
 Techniques utilized
 Database-oriented, data warehouse (OLAP), machine learning,
statistics, visualization, etc.
 Applications adapted
 Retail, telecommunication, banking, fraud analysis, bio-data mining, stock
market analysis, Web mining, etc.
December 7, 2021 Data Mining: Concepts and Techniques 21
 OLAP Mining: Integration of Data Mining and Data Warehousing

 Data mining systems, DBMS, Data warehouse

systems coupling
 No coupling, loose-coupling, semi-tight-coupling, tight-coupling
 On-line analytical mining data
 integration of mining and OLAP technologies
 Interactive mining multi-level knowledge
 Necessity of mining knowledge and patterns at different levels of
abstraction by drilling/rolling, pivoting, slicing/dicing, etc.
 Integration of multiple mining functions
 Characterized classification, first clustering and then association

December 7, 2021 Data Mining: Concepts and Techniques 22

 An OLAM Architecture
Mining query Mining result Layer4
User Interface
User GUI API
Layer3
OLAM OLAP
Engine Engine OLAP/OLAM

Data Cube API

Layer2
MDDB
MDDB
Meta
Data
Filtering&Integration Database API Filtering
Layer1
Data cleaning Data
Databases Data
Data integration Warehouse Repository
December 7, 2021 Data Mining: Concepts and Techniques 23
 Major Issues in Data Mining
 Mining methodology
 Mining different kinds of knowledge from diverse data types, e.g., bio, stream,
Web
 Performance: efficiency, effectiveness, and scalability
 Pattern evaluation: the interestingness problem
 Incorporation of background knowledge
 Handling noise and incomplete data
 Parallel, distributed and incremental mining methods
 Integration of the discovered knowledge with existing one: knowledge fusion
 User interaction
 Data mining query languages and ad-hoc mining
 Expression and visualization of data mining results
 Interactive mining of knowledge at multiple levels of abstraction
 Applications and social impacts
 Domain-specific data mining & invisible data mining
 Protection of data security, integrity, and privacy
December 7, 2021 Data Mining: Concepts and Techniques 24
 Summary
 Data mining: discovering interesting patterns from large amounts of
data
 A natural evolution of database technology, in great demand, with
wide applications
 A KDD process includes data cleaning, data integration, data
selection, transformation, data mining, pattern evaluation, and
knowledge presentation
 Mining can be performed in a variety of information repositories
 Data mining functionalities: characterization, discrimination,
association, classification, clustering, outlier and trend analysis, etc.
 Data mining systems and architectures
 Major issues in data mining

December 7, 2021 Data Mining: Concepts and Techniques 25

 A Brief History of Data Mining Society
 1989 IJCAI Workshop on Knowledge Discovery in Databases (Piatetsky-
Shapiro)
 Knowledge Discovery in Databases (G. Piatetsky-Shapiro and W. Frawley, 1991)

 1991-1994 Workshops on Knowledge Discovery in Databases

 Advances in Knowledge Discovery and Data Mining (U. Fayyad, G. Piatetsky-Shapiro, P. Smyth,
and R. Uthurusamy, 1996)

 1995-1998 International Conferences on Knowledge Discovery in Databases

and Data Mining (KDD’95-98)
 Journal of Data Mining and Knowledge Discovery (1997)

 1998 ACM SIGKDD, SIGKDD’1999-2001 conferences, and SIGKDD

Explorations
 More conferences on data mining
 PAKDD (1997), PKDD (1997), SIAM-Data Mining (2001), (IEEE) ICDM (2001), etc.

December 7, 2021 Data Mining: Concepts and Techniques 26

 Where to Find References?
 Data mining and KDD (SIGKDD: CDROM)
 Conferences: ACM-SIGKDD, IEEE-ICDM, SIAM-DM, PKDD, PAKDD, etc.
 Journal: Data Mining and Knowledge Discovery, KDD Explorations
 Database systems (SIGMOD: CD ROM)
 Conferences: ACM-SIGMOD, ACM-PODS, VLDB, IEEE-ICDE, EDBT, ICDT, DASFAA
 Journals: ACM-TODS, IEEE-TKDE, JIIS, J. ACM, etc.
 AI & Machine Learning
 Conferences: Machine learning (ML), AAAI, IJCAI, COLT (Learning Theory), etc.
 Journals: Machine Learning, Artificial Intelligence, etc.
 Statistics
 Conferences: Joint Stat. Meeting, etc.
 Journals: Annals of statistics, etc.
 Visualization
 Conference proceedings: CHI, ACM-SIGGraph, etc.
 Journals: IEEE Trans. visualization and computer graphics, etc.
December 7, 2021 Data Mining: Concepts and Techniques 27
 Recommended Reference Books
 R. Agrawal, J. Han, and H. Mannila, Readings in Data Mining: A Database Perspective, Morgan
Kaufmann (in preparation)
 U. M. Fayyad, G. Piatetsky-Shapiro, P. Smyth, and R. Uthurusamy. Advances in Knowledge Discovery
and Data Mining. AAAI/MIT Press, 1996
 U. Fayyad, G. Grinstein, and A. Wierse, Information Visualization in Data Mining and Knowledge
Discovery, Morgan Kaufmann, 2001
 J. Han and M. Kamber. Data Mining: Concepts and Techniques. Morgan Kaufmann, 2001
 D. J. Hand, H. Mannila, and P. Smyth, Principles of Data Mining, MIT Press, 2001
 T. Hastie, R. Tibshirani, and J. Friedman, The Elements of Statistical Learning: Data Mining, Inference,
and Prediction, Springer-Verlag, 2001
 T. M. Mitchell, Machine Learning, McGraw Hill, 1997
 G. Piatetsky-Shapiro and W. J. Frawley. Knowledge Discovery in Databases. AAAI/MIT Press, 1991
 S. M. Weiss and N. Indurkhya, Predictive Data Mining, Morgan Kaufmann, 1998
 I. H. Witten and E. Frank, Data Mining: Practical Machine Learning Tools and Techniques with Java
Implementations, Morgan Kaufmann, 2001

December 7, 2021 Data Mining: Concepts and Techniques 28

 Thank you !!!
December 7, 2021 Data Mining: Concepts and Techniques 29