DISCIPLINE ELECTIVE

CSE2021 - Data Mining

S. Thabassum Khan
ASSISTANT PROFESSOR / CSE
PRESIDENCY UNIVERSITY,
BENGALURU
 Module – 1 Introduction to Data Mining
1.1 Introduction to Data mining
1.2 Data Mining Goals
1.3 Stages of the Data Mining Process
1.4 Data Mining Techniques
1.5 Applications.
 Module 1 – Detailed Syllabus Topics
• Motivation,
• What is Data Mining,
• Origin of Data Mining,
• Data Mining Tasks,
• Data Mining Techniques
• Applications of Data Mining,
• Introduction to Data warehouse
Motivation for Data Mining
 Motivation: 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

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 Why Data Mining?
• Lots of data is being collected
and warehoused
• Web data, e-commerce
• purchases at department/
grocery stores
• Bank/Credit Card
transactions
• Medical data
• remote sensors on a satellite
• telescopes scanning the skies
• microarrays generating gene
expression data
What is Data Mining
What is Data Mining?
 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)
• Watch out: Is everything “data mining”?
• Query processing
• Expert systems or statistical programs

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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

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Classification of Data Mining
 Data Mining: Classification
Schemes
• Different views, different classifications
• Kinds of data to be mined
• Kinds of knowledge to be discovered
• Kinds of techniques utilized
• Kinds of applications adapted

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 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, WWW
• Knowledge to be mined
• Characterization, discrimination, association, classification,
clustering, trend/deviation, outlier analysis, etc.
• Multiple/integrated functions and mining at multiple levels

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 Multi-Dimensional View of Data
Mining
• 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.

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 Examples of Large Datasets
• Government: IRS, NGA, …
• Large corporations
• WALMART: 20M transactions per day
• MOBIL: 100 TB geological databases
• AT&T 300 M calls per day
• Credit card companies

• Scientific
• NASA, EOS project: 50 GB per hour
• Environmental datasets
Origin of Data Mining
 Origin of Data Mining
• 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

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 Origins of Data Mining
• Draws ideas from machine learning/AI, pattern recognition, statistics,
and database systems
• Must address: AI /
• Enormity of data Statistics
Machine Learning
• High dimensionality
of data
• Heterogeneous, Data Mining
distributed nature
of data
Database
systems
Data Mining: Confluence of Multiple
Disciplines
Database
Statistics
Systems

Machine
Visualization
Learning

Algorithm Other
Disciplines

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Data Mining Tasks
 Data Mining Tasks
1. Identify the problem
2. Use data mining techniques to transform the data into
information
3. Act on the information
4. Measure the results
 Data Mining Tasks
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
 Pattern Evaluation

Data Mining:
Data Mining
A KDD Process
Task-relevant Data • Data mining—core of
knowledge discovery
Data Selection process
Warehouse

Data Cleaning

Data Integration

Databases

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Steps of a KDD
Process

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 Graphical user interface

Architecture: Pattern evaluation

Typical Data
Mining System Data mining engine

Database or data Knowledge-base

warehouse server
Filtering
Data cleaning & data integration

Databases

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Data Mining Techniques
DATA
MINING
TECHNIQUE
S
 Data Mining Techniques
• Concept description: Characterization and discrimination
• Generalize, summarize, and contrast data characteristics
• Association (correlation and causality)
• Milk à Bread [0.5%, 75%]
• Classification and Prediction
• Construct models (functions) that describe and distinguish classes or
concepts for future prediction
• Presentation: decision-tree, classification rule, neural network

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 Data Mining Techniques
• 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
• Useful in fraud detection, rare events analysis
• Trend and evolution analysis
• Trend and deviation: regression analysis
• Sequential pattern mining, periodicity analysis

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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!
 Data Cleaning
• Data cleaning tasks
• Fill in missing values
• Identify outliers and smooth out noisy data
• Correct inconsistent data
 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
 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.
 Classification Example
cal c al us
i i o
g or gor in
u
t e t e nt ss
a a o a
c c c cl
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
 Example of a Decision Tree
l l
i c a
i c a
o us
r r u
ego ego tin ss
t t n a
ca ca co cl
Tid Home Marital Taxable
Splitting Attributes
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

Another Example of Decision Tree
cal cal us
i i o
or or nu
t eg
t eg
nti
a ss Single,
ca ca co cl MarSt
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
10 No Single 90K Yes
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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

 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.
 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.
 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!
 Illustrating Clustering
 Euclidean Distance Based Clustering in 3-D space.

Intercluster distances
are maximized
Clustering: Application 1
 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.
 Illustrating Document Clustering
• Clustering Points: 3204 Articles of Los Angeles Times.
• Similarity Measure: How many words are common in these documents
(after some word filtering).
Category Total Correctly
Articles Placed
Financial 555 364

Foreign 341 260

National 273 36

Metro 943 746

Sports 738 573

Entertainment 354 278

 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} --> {Bread}
4 Beer, Bread, Diaper, Milk {Beer, Coke} --> {Diaper}
5 Coke, Diaper, Milk
Data Compression

Original Data Compressed

Data
lossless

ss y
lo
Original Data
Approximated
 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
 Sampling
• Allow a mining algorithm to run in complexity that is potentially sub-
linear to the size of the data
• Choose a representative subset of the data
• Simple random sampling may have very poor performance in the presence of skew

• Develop adaptive sampling methods

• Stratified sampling:
• Approximate the percentage of each class (or subpopulation of interest) in the overall database
• Used in conjunction with skewed data

• Sampling may not reduce database I/Os (page at a time).

 Samplin
g

W O R
SRS le random
i m p h o u t
( s e wi t
p l
sam ment)
p l a c e
re

SRSW
R

Raw Data
 Raw Data Cluster/Stratified Sample
Sampling

•The number of samples drawn from each cluster/stratum is analogous

to its size.
•Thus, the samples represent better the data and outliers are avoided
 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.

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Data Mining Applications
 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)

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 Why Data Mining?—Potential
Applications
• Other Applications
• Text mining (news group, email, documents) and Web mining
• Stream data mining
• Bioinformatics and bio-data analysis

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Market Analysis and Management

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 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

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 Other Applications
• 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.
• Data Warehousing: Walmart
• Astronomy
• Molecular biology

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Major Issues in Data Mining
 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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 Major Issues in Data Mining
• 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

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 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

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