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Data Mining From Scratch

1. Data mining draws ideas from machine learning, statistics, and database systems to extract useful patterns from large datasets. 2. It involves data preparation, applying algorithms to discover patterns, and evaluating the interestingness and usefulness of the patterns found. 3. Data mining has applications in areas like market analysis, fraud detection, and bioinformatics to provide insights, predictions and knowledge.

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Kakje Kan
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61 views

Data Mining From Scratch

1. Data mining draws ideas from machine learning, statistics, and database systems to extract useful patterns from large datasets. 2. It involves data preparation, applying algorithms to discover patterns, and evaluating the interestingness and usefulness of the patterns found. 3. Data mining has applications in areas like market analysis, fraud detection, and bioinformatics to provide insights, predictions and knowledge.

Uploaded by

Kakje Kan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Data Mining From

Scratch With Excel And R


Pemateri:
Marcelinus A.S. Adhiwibawa, S.P., M.Stat.
Alumnus PS Magister Statistika Univ. Brawijaya
Research Assistant MRCPP Univ Ma Chung
Why Data Mining?
• The Explosive Growth of Data: from terabytes to petabytes
• Data collection and data availability
• Automated data collection tools, database systems, Web, computerized
society
• Major sources of abundant data
• Business: Web, e-commerce, transactions, stocks, …
• Science: Remote sensing, bioinformatics, scientific simulation, …
• Society and everyone: news, digital cameras,

• We are drowning in data, but starving for knowledge!

• “Necessity is the mother of invention”—Data mining—Automated analysis of


massive data sets

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 and its applications
• Web technology (XML, data integration) and global information systems

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
• Alternative name
• Knowledge discovery in databases (KDD)

4
Why Data Mining?—Potential Applications

• Data analysis and decision support


• Market analysis and management
• Target marketing, customer relationship management (CRM),
market basket analysis, market segmentation

• Risk analysis and management


• Forecasting, customer retention, quality control, competitive
analysis

• Fraud detection and detection of unusual patterns (outliers)

5
Why Data Mining?—Potential Applications

• Other Applications
• Text mining (news group, email, documents) and Web
mining
• Stream data mining
• Bioinformatics and bio-data analysis

6
Market Analysis and Management

• Where does the data come from?


• Credit card transactions, discount coupons, customer
complaint calls
• Target marketing
• Find clusters of “model” customers who share the same
characteristics: interest, income level, spending habits, etc.
• Determine customer purchasing patterns over time

7
Market Analysis and Management

• Cross-market analysis
• Associations/co-relations between product sales, &
prediction based on such association
• Customer profiling
• What types of customers buy what products

• Customer requirement analysis


• Identifying the best products for different customers
• Predict what factors will attract new customers

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Fraud Detection & Mining Unusual Patterns

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


• Applications: Health care, retail, credit card service, telecomm.
• Medical insurance
• Professional patients, and ring of doctors
• Unnecessary or correlated screening tests
• Telecommunications:
• 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

9
Data Mining: A KDD Process

• Data mining—core of Pattern Evaluation


knowledge discovery
process
Data Mining

Task-relevant Data

Data Warehouse Selection

Data Cleaning

Data Integration

Databases 10
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.
• 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
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Data Mining: On What Kinds of Data?

• Relational database
• Data warehouse
• Transactional database
• Advanced database and information repository
• Spatial and temporal data
• Time-series data
• Stream data
• Multimedia database
• Text databases & WWW

12
Data Mining Functionalities
Data mining functionalities are generally divided into two major
categories:

• Predictive tasks [Use some attributes to predict unknown or future


values of other attributes.]
• Classification
• Regression

• Descriptive tasks [Find human-interpretable patterns that describe the


data.]
• Association Discovery
• Clustering
Are All the “Discovered” Patterns Interesting?

• Data mining may generate thousands of patterns: Not all of them are
interesting

• 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.

14
Origins of Data Mining
• Draws ideas from: machine learning/AI, statistics, and database
systems

Statistics
Machine Learning

Data Mining

Database
systems
Data Mining: Confluence of Multiple Disciplines

Database
Statistics
Systems

Machine
Data Mining Visualization
Learning

Algorithm Other
Disciplines

16
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

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