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Data Mining

Data Mining

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Published by imad rehman

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Published by: imad rehman on Dec 17, 2009
Copyright:Attribution Non-commercial


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Data Mining


Data mining, the extraction of hidden predictive information from large databases, is a powerful new technology with great potential to help companies focus on the most important information in their data warehouses.

Evolutionary Step
 Data

Collection (1960s)  Data Access (1980s)  Data Warehousing & Decision Support(1990s)  Data Mining (Emerging Today)

Goals of Data Mining
 Prediction

How certain attributes within the data behave in future. Data patterns used to identify the existence of an item, an event or an activity.
Data partition to identify different classes or patterns based on combination of parameters.

 Identification

 Classification

 Optimization

Optimize the use of limited resources like time, space, money or material and maximize sale & profit under given constraints.


What customers buy with discount.  How much sale value a store generates in a given period.  Whether deleting a sale line yield more profit.  Uses techniques like Regression, correlation etc.

 Intruders

trying to break the computer system may be identified by the program executed, files accessed and CPU time per session.  Existence of gene is identified by certain sequence of nucleotide symbols present in the DNA sequence.  Authentication

 Customers

can be identified as discount seekers, shoppers in a rush, loyal regular customers, shoppers attached to name brands etc.  Classification can help in categorizing food as health food, party food, school lunch food etc.

Levels of analysis
 Regression  Decision

Trees  Nearest Neighbor Classification  Neural Networks  Rule Induction –If - else - then

Technological infrastructure required
 Depends


Size of the database  Query complexity

 Relational

database storage  extensive indexing capabilities  Massively Parallel Processors (MPP)

Applications of Data Mining
 Marketing
 Consumer

pattern  Determination of market strategy  Targeted mailing  Advertisement campaigns  Design of catalogue  Store layout

behavior based on buying

Applications of Data Mining Cont..
 Finance
 Analysis

of trustworthiness of a client  Segmentation of account receivables  Performance analysis of financial investments like stocks, bonds & mutual funds  Evaluation of financing options  Fraud detection

Applications of Data Mining Cont..
 Manufacturing
 Optimization

of resources like machine, manpower & material  Optimal design of manufacturing processes  Shop floor layout  Product design  Packaging design
 

Applications of Data Mining Cont..
 Healthcare
 Discovery

pattern in radiological images  Analysis of micro array to relate to diseases  Analysis of side effects of drugs.  Effectiveness of certain treatments.  Optimizing processes within hospitals.  Relating patients wellness data with doctor’s qualification.
 

Applications of Data Mining Cont..
 Web  SAS

site personalization
card fraud detection

 Credit

lie detector  Market based analysis

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