Data Mining

Course Overview

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 Data Mining Overview

Understanding Data
Classification: Decision Trees and Bayesian classifiers,
ANN, SVM
Association Rules Mining: APriori, FP-growth
Clustering: Hierarchical and Partition approaches
Dimensionality Reductions
Advanced topics: Social Network graph mining, outlier
detection,

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 What is Data Mining?

Data Mining is:

(1) The efficient discovery of previously unknown,
valid, potentially useful, understandable patterns in
large datasets

(2) The analysis of (often large) observational data

sets to find unsuspected relationships and to
summarize the data in novel ways that are both
understandable and useful to the data owner

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 Overview of terms

Data: a set of facts (items) D, usually stored in a

database
Pattern: an expression E in a language L, that
describes a subset of facts
Attribute: a field in an item i in D.
Interestingness: a function ID,L that maps an
expression E in L into a measure space M

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 Overview of terms

The Data Mining Task:

For a given dataset D, language of facts L,

interestingness function ID,L and threshold c, find
the expression E such that ID,L(E) > c efficiently.

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Knowledge Discovery

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 Examples of Data mining Applications

1. Fraud detection: credit cards, phone calls

2. Marketing: customer targeting
3. Data Warehousing: Walmart
4. Astronomy
5. Molecular biology

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 How Data Mining is used

1. Identify the problem

2. Use data mining techniques to transform the
data into information
3. Act on the information
4. Measure the results

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 The Data Mining Process

1. Understand the domain

2. Create a dataset:
Select the interesting attributes
Data cleaning and preprocessing
3. Choose the data mining task and the specific
algorithm
4. Interpret the results, and possibly return to 2

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 Origins of Data Mining

Draws ideas from machine learning/AI,

pattern recognition, statistics, and database
systems
AI /
Statistics
Must address: Machine Learning
Enormity of data
High dimensionality
of data Data Mining

Heterogeneous,
distributed nature Database
of data systems
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 Data Mining Tasks

Prediction Methods
Use some variables to predict unknown or future
values of other variables.

Description Methods
Find human-interpretable patterns that describe the
data.

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Data Mining Tasks...

Classification [Predictive]
Clustering [Descriptive]
Association Rule Discovery [Descriptive]
Sequential Pattern Discovery [Descriptive]
Regression [Predictive]
Deviation Detection [Predictive]

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 Data Mining Tasks

1. Classification: learning a function that maps an

item into one of a set of predefined classes
2. Regression: learning a function that maps an
item to a real value
3. Clustering: identify a set of groups of similar
items

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 Data Mining Tasks

4. Dependencies and associations:

identify significant dependencies between data
attributes
5. Summarization: find a compact description of
the dataset or a subset of the dataset

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 Data Mining Methods

1. Decision Tree Classifiers:

Used for modeling, classification
2. Association Rules:
Used to find associations between sets of attributes
3. Sequential patterns:
Used to find temporal associations in time series
4. Hierarchical clustering:
used to group customers, web users, etc

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Why Data Preprocessing?

Data in the real world is dirty

incomplete: lacking attribute values, lacking certain attributes of
interest, or containing only aggregate data
noisy: containing errors or outliers
inconsistent: containing discrepancies in codes or names
No quality data, no quality mining results!
Quality decisions must be based on quality data
Data warehouse needs consistent integration of quality data
Required for both OLAP and Data Mining!

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 Why can Data be Incomplete?

Attributes of interest are not available (e.g., customer

information for sales transaction data)
Data were not considered important at the time of
transactions, so they were not recorded!
Data not recorder because of misunderstanding or
malfunctions
Data may have been recorded and later deleted!
Missing/unknown values for some data

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 Data Cleaning
Data cleaning tasks
Fill in missing values
Identify outliers and smooth out noisy data
Correct inconsistent data

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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.

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 Classification Example

Tid Home Marital Taxable Home Marital Taxable

Owner Status Income Default Owner Status Income Default

1 Yes Single 125K No No Single 75K ?

2 No Married 100K No Yes Married 50K ?

3 No Single 70K No No Married 150K ?

4 Yes Married 120K No Yes Divorced 90K ?
5 No Divorced 95K Yes No Single 40K ?
6 No Married 60K No No Married 80K ? Test
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Set
7 Yes Divorced 220K No
8 No Single 85K Yes
9 No Married 75K No
Training
Learn
Model
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10 No Single 90K Yes Set Classifier

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 Example of a Decision Tree

Splitting Attributes
Tid Home Marital Taxable
Owner Status Income Default

1 Yes Single 125K No

2 No Married 100K No HO
Yes No
3 No Single 70K No
4 Yes Married 120K No NO MarSt
5 No Divorced 95K Yes Single, Divorced Married
6 No Married 60K No
TaxInc NO
7 Yes Divorced 220K No
8 No Single 85K Yes
< 80K > 80K

9 No Married 75K No NO YES

10 No Single 90K Yes
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Training Data Model: Decision Tree

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 Another Example of Decision Tree

MarSt Single,
Married Divorced
Tid Home Marital Taxable
Owner Status Income Default
NO HO
1 Yes Single 125K No No
Yes
2 No Married 100K No
3 No Single 70K No NO TaxInc
4 Yes Married 120K No < 80K > 80K
5 No Divorced 95K Yes
NO YES
6 No Married 60K No
7 Yes Divorced 220K No
8 No Single 85K Yes
9 No Married 75K No There could be more than one tree that
10 No Single 90K Yes
fits the same data!
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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.

From [Berry & Linoff] Data Mining Techniques, 1997

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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.

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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.

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 Illustrating Clustering
⌧Euclidean Distance Based Clustering in 3-D space.

Intracluster distances Intercluster distances

are minimized are maximized

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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.

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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.

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 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.

TID Items
1 Bread, Coke, Milk
2 Beer, Bread
Rules Discovered:
3 Beer, Coke, Diaper, Milk
{Milk} --> {Coke}
4 Beer, Bread, Diaper, Milk
{Diaper, Milk} --> {Beer}
5 Coke, Diaper, Milk

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 Association Rule Discovery:
Application 1

Marketing and Sales Promotion:

Let the rule discovered be
{softdrinks, … } --> {Potato Chips}
Potato Chips as consequent => Can be used to determine what
should be done to boost its sales.
Softdrinks in the antecedent => Can be used to see which
products would be affected if the store discontinues selling
softdrinks.
Softdrinks in antecedent and Potato chips in consequent => Can
be used to see what products should be sold with softdrinks to
promote sale of Potato chips!

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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.
So, don’t be surprised if you find six-packs stacked next to
diapers!
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Association Rule Discovery: Application 3

Inventory Management:
Goal: A consumer appliance repair company wants to
anticipate the nature of repairs on its consumer
products and keep the service vehicles equipped with
right parts to reduce on number of visits to consumer
households.
Approach: Process the data on tools and parts
required in previous repairs at different consumer
locations and discover the co-occurrence patterns.

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 Regression

Predict a value of a given continuous valued variable

based on the values of other variables, assuming a linear
or nonlinear model of dependency.
Greatly studied in statistics, neural network fields.
Examples:
Predicting sales amounts of new product based on
advetising expenditure.
Predicting wind velocities as a function of
temperature, humidity, air pressure, etc.
Time series prediction of stock market indices.

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Deviation/Anomaly Detection
Detect significant deviations from normal behavior
Applications:
Credit Card Fraud Detection

Network Intrusion
Detection

Typical network traffic at University level may reach over 100 million connections per day

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 Challenges of Data Mining

Scalability
Dimensionality
Complex and Heterogeneous Data
Data Quality
Data Ownership and Distribution
Privacy Preservation
Streaming Data

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 Data Compression

Original Data Compressed

Data
lossless

Original Data
Approximated

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 Numerosity Reduction:
Reduce the volume of data

Parametric methods
Assume the data fits some model, estimate model parameters,
store only the parameters, and discard the data (except
possible outliers)

Non-parametric methods
Do not assume models
Major families: histograms, clustering, sampling

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 Clustering

Partitions data set into clusters, and models it by one

representative from each cluster
Can be very effective if data is clustered but not if data
is “smeared”
There are many choices of clustering definitions and
clustering algorithms, more later!

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 Recommended Reference Books

J. Han, M. Kamber, and J. Pei, Data Mining: Concepts and

Techniques. Morgan Kaufmann, 3rd ed. , 2011
P.-N. Tan, M. Steinbach and V. Kumar, Introduction to Data Mining,
Wiley, 2005 (2nd ed. 2016)
Mohammed J. Zaki and Wagner Meira Jr., Data Mining and Analysis:
Fundamental Concepts and Algorithms 2014

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