tat Home Coding Ground ©p Dyeroriatopoine = — Data Mining - Applications & Trends8:30 © Data mining is widely used in diverse areas. There are a number of commercial data mining system available today and yet there are many challenges in this field. In this tutorial, we will discuss the applications and the trend of data mining. Data Mining Applications Here is the list of areas where data mining is widely used - = Financial Data Analysis = Retail Industry ® Telecommunication Industry = Biological Data Analysis = Other Scientific Applications = Intrusion Detection Financial Data Analysis The financial data in banking and financial industry is generally reliable and of high quality which facilitates systematic data analysis and data mining. Some of the typical cases are as follows - = Design and construction of data warehouses for multidimensional data analysis and data mining.8:30 © ‘Ot tte “Ss at © » Loan payment prediction and customer credit policy analysis. = Classification and clustering of customers for targeted marketing. © Detection of money laundering and other financial crimes. Retail Industry Data Mining has its great application in Retail Industry because it collects large amount of data from on sales, customer purchasing history, goods transportation, consumption and services. It is natural that the quantity of data collected will continue to expand rapidly because of the increasing ease, availability and popularity of the web. Data mining in retail industry helps in identifying customer buying patterns and trends that lead to improved quality of customer service and good customer retention and satisfaction. Here is the list of examples of data mining in the retail industry = Design and Construction of data warehouses based on the benefits data mining.8:30 © 1D feo “Sil aw © Multidimensional analysis of sales, customers, products, time and region. o Analysis of effectiveness of sales campaigns. o Customer Retention. © Product recommendation and cross- referencing of items. Telecommunication Industry Today the telecommunication industry is one of the most emerging industries providing various services such as fax, pager, cellular phone, internet messenger, images, e-mail, web data transmission, etc. Due to the development of new computer and communication technologies, the telecommunication industry is rapidly expanding. This is the reason why data mining is become very important to help and understand the business. Data mining in telecommunication industry helps in identifying the telecommunication patterns, catch fraudulent activities, make better use of resource, and improve quality of service. Here is the list of examples for whi data mining improves telecommunicat!8:30 © 10 fe “A! © ue Wy Hapieyes ieeurneauo services — ® Multidimensional Analysis of Telecommunication data. ® Fraudulent pattern analysis. ® Identification of unusual patterns. = Multidimensional association and sequential patterns analysis. = Mobile Telecommunication services. 2 Use of visualization tools in telecommunication data analysis. Biological Data Analysis In recent times, we have seen a tremendous growth in the field of biology such as genomics, proteomics, functional Genomics and biomedical research. Biological data mining is a very important part of Bioinformatics. Following are the aspects in which data mining contributes for biological data analysis - = Semantic integration of heterogeneous, distributed genomic and_ proteomic databases. = Alignment, indexing, similarity Data Compression - The basic idea of this theory is to compress the given data by encoding in terms of the following - ® Bits = Association Rules = Decision Trees = Clusters © Pattern Discovery - The basic idea of this theory is to discover patterns occurring in a database. Following are the areas that contribute to this theory - = Machine Learning = Neural Network = Association Mining ® Sequential Pattern Matching © Clustering = Probability Theory - This theory is based on statistical theory. The basic idea behind this theory is to discover joint probability distributions of random variables. = Probability Theory - According to ti theorv. data minina finds the patterns8:32 © 10! tn * Probability Theory - According to this theory, data mining finds the patterns that are interesting only to the extent that they can be used in the decision- making process of some enterprise. Microeconomic View - As per this theory, a database schema consists of data and patterns that are stored in a database. Therefore, data mining is the task of performing induction on databases. 1 Inductive databases - Apart from the database-oriented techniques, there are statistical techniques available for data analysis. These techniques can be applied to scientific data and data from economic and social sciences as well. Statistical Data Mining Some of the Statistical Data Mining Techniques are as follows - = Regression - Regression methods are used to predict the value of the response variable from one or more predictor variables where the variables are numeric. Listed below are the om of Regression -= Regression - Regression methods are used to predict the value of the response variable from one or more predictor variables where the variables are numeric. Listed below are the forms of Regression - = Linear = Multiple = Weighted + Polynomial = Nonparametric = Robust o Generalized Linear Models = Generalized Linear Model includes - = Logistic Regression = Poisson Regression The model's generalization allows a categorical response variable to be related to a set of predictor variables in a manner similar to the modelling of numeric response variable using linear regression. Analweie af Marianna — Thie tanhniaua