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    BY : MOHIT YADAV (096 )JAYEETA CHATTERJEE ( 101)MONIKA KATARIA ( 112 )

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    MEANING OF DATA MINING

    Data mining (the analysis step of

    the knowledge discovery in databases process),

    a relatively young and interdisciplinary field

    of computer science is the process of

    discovering new patterns from large data

    sets involving methods at the intersection

    of artificial intelligence, machinelearning, statistics and database systems.

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    ROLE OF DATA MINING

    Extract, transform, and load transaction data onto the data

    warehouse system.

    Store and manage the data in a multidimensional database

    system.

    Provide data access to business analysts and information

    technology professionals.

    Analyze the data by application software.

    Present the data in a useful format, such as a graph or table.

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    EXAMPLE OF DATA MINING

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    ADVANTAGES AND

    DISADVANTAGES OF DATAMINING

    Marketing / Retail

    Finance / Banking

    Manufacturing Government

    Privacy Issues Security Issues

    Misuse of Information / Inaccurate Information

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    Memory-Based Reasoning (MBR) tries to mimic human behavior in an

    automatic way. Memories of specific events are used directly to make

    decisions, rather than indirectly (as in systems which use experience to infer

    rules). MBR is a two step procedure: first, identifying similar cases from

    experience, secondly, applying the information from these cases to new

    cases. MBR is specifically well suited to non-numerical data. MBR needs

    a distance measure to assign dissimilarity of two observations and

    a combination function to combine the results from the neighboring points

    to achieve an answer. Generating examples is much easier than generatingrules which makes MBR so attractive. However, applying rules to new

    observations is much easier and faster than comparing new cases to a bulk

    of memorized objects.

    MEMORY BASED REASONING

    TECHNIQUE - MEANING

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    The human ability to reason from experience depends on

    the ability to recognize appropriate examples from the past.

    A doctor diagnosing diseases, a claims analyst identifying

    fraudulent insurance claims, Each first identifies similar

    cases from experience and then applies knowledge of thoseexamples to the problem at hand. This is the essence of

    memory-based reasoning. A database of known records is

    searched to find preclassified records similar to a new

    record. These neighbors are used for classification andestimation.

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    ELEMENTS OF MBR

    It uses known instances of a model to predictunknown instances.

    Maintains a dataset of known records.

    When a new record arrives for evaluation, the

    algorithm finds neighbors similar to new record

    which helps in :

    Prediction Classification

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    HOW IT WORKS?

    When a new record arrives, the tool first

    calculates the distance between new record

    and the records existing in the training dataset. The distance function does the calculation.

    This determine which training dataset qualify

    to be considered as neighbors.

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    SOLVING A DATA MINING

    PROBLEM USING MBR

    Selecting the most suitable historical records to

    form the training or base dataset.

    Establishing the best way to compose the

    historical record.

    Determining the two essential functions:

    Distance

    Function

    Combination

    Function

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    MBRAPPLICATIONS

    Fraud detection

    Customer response prediction

    Medical treatments

    Classifying responses MBR can process

    free-text responses and assign codes

    12

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    PREDICTIVE DATA MINING

    USED IN MBR

    13

    Tridas Vickie MikeHonest

    BarneyWaldoWallyCrooked

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    PREDICTION

    14

    Tridas Vickie Mike

    Honest = has round eyes anda

    smile

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    ADVANTAGES

    Can use data asis.

    Able to adapt easily to new data.

    Adding/deleting example does not give sideeffect.

    Explanation of answers is based on realexamples.

    It is possible to apply to ordered data as well as Nominal data and ratio data.

    High parallelism is possible.

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    DISADVANTAGES

    Resource intensive

    No ability to generate the answer that does notexist in the examples data base.

    Prediction accuracy strongly depends on thedefinition of similarity.

    Choosing appropriate historical data for use intraining

    Choosing the most efficient way to represent thetraining data

    Choosing the distance function, combinationfunction, and the number of neighbors

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    CONCLUSION

    It produces results that are readily understandable.

    It is applicable to arbitrary data types, even non-relational data.

    It works efficiently on almost any number of fields.

    Maintaining the training set requires a minimalamount of effort.

    It is computationally expensive when doingclassification and prediction.

    It requires a large amount of storage for the trainingset.

    Results can be dependent on the choice of distancefunction, combination function, and number of

    neighbors.

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