unit- 3 data mining pt.pptx

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    UNIT- 3

    DATA MINING

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    WHAT IS DATA MINING?

    Data Mining is a collection of techniques forefficient automated discovery of previouslyunknown , valid , novel, useful andunderstandable patterns in large databases.

    Pattern must be actionable so that they maybe used in an enterprises decision makingprocess

    It is also known as Knowledge Discovery

    Data Mining refer to the extraction of hiddenpredictive information patterns from largedatabase.

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    DATA MINING

    Raw

    Information

    Hidden

    information

    PatternData Mining

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    NEED FOR DATA MINING

    Data mining has found many application in thelast few years for a number of reasons:

    Growth in OLTP data

    Growth in data due to cards Growth in data due to web

    Growth in data due to telephone transactions,banking, medical.

    Growth in data storage capacity Decline in cost processing

    Availability of software/ tool

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    DATA MINING PROCESS

    Requirement analysis

    Clearly define goals

    Clearly define business problem

    Data Selection and Collection

    Cleaning and preparing data

    Data mining exploration and validation

    Implementing , evaluating and monitoring

    Results visualization

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    CRISP( CROSS INDUSTRY STANDARD PROCESS)

    DATA MINING MODEL

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    KNOWLEDGE DISCOVERY PROCESS

    Data mining is process of knowledge

    discovery.

    Data mining discovers knowledge or

    information that you never knew was present

    in your data.

    Knowledge itself as manifests itself as

    relationships and patterns.

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    RELATIONSHIPS

    Data mining discovers relationships between

    two or more different objects along with the

    time dimension.

    Sometime relationship may occur between

    same objects

    Discovery of relationships is a key result of

    data mining.

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    KNOWLEDGE DISCOVERY PHASES

    1. Define Business Objectives

    2. Prepare data

    3.

    Perform data mining4. Evaluate results

    5. Present Discoveries

    6. Incorporate Usage of Discoveries

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    KNOWLEDGE DISCOVERY PROCESS

    Determination

    Of business objectives

    Evaluation and

    Application of

    Results

    Application of suitable DataMining Techniques

    Selection and

    preparation of data

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    DATA MINING VS DATA WAREHOUSE

    OLAP

    What is happening inenterprise.

    Summary data

    Limited dimensions

    Small number of attributes.

    User driven , interactive

    analysis Multidimensional , drill

    down , and slice- and- dice

    Mature and widely used

    DATA MINING

    Predict future based onwhy this happening.

    Detailed transaction- level

    data. Large dimensions

    Many dimension attributes.

    Data- driven automatic

    knowledge discovery. Prepare data, mining tools

    Still emerging

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    RELATIONSHIP OF DATA WAREHOUSE AND

    DATA MINING Data mining algorithms need large amount of

    data, detailed level data whereas in datawarehouse contain lowest level of data.

    Data mining need integrated and cleansed datawhereas data warehouse contain data that issuitable for data mining.

    Infrastructure of data warehouse is robust, withparallel processing technology and relationaldatabase systems since data mining needs thistype of data

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    DATA MINING TECHNIQUES

    Association rules mining or market basket

    analysis

    Supervised classification

    Cluster Analysis

    Web data mining

    Search engines

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    TECHNIQUES

    Association rules mining or market

    basket analysis

    Transaction Items bought

    1

    2

    3

    4

    bread, milk, cheese

    bread, cheese

    jam, milk

    milk, ghee

    Now here we can see maximum combination of bread and cheese

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    SUPERVISED CLASSIFICATION

    Data mining technique origin from machinelearning techniques.

    It help in predicting whether an individual is

    likely to respond to a direct mail or not. Identify good risk for granting loans or

    insurance.

    Rule for insurance

    If sex= female & 19

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    CLUSTER ANALYSIS

    Grouping data into disjoint sets that are similar in

    some respect. It also attempts to place dissimilar

    data in different clusters.

    For example, in the context of super market data,clustering of sale items to perform effective shelf

    space organization is a typical application

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    WEB DATA MINING

    It has impact on way we search &findinformation at home and at work

    Evaluation of learning Sites

    Example :- student portalCheck login

    Notes

    Submit online testChat page for clarifying doubts

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    SEARCH ENGINES

    It is huge databases of web pages and

    software package for indexing and retrieving

    pages that enable users to find information

    Ranking help the user to choose best one

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    DATA MINING APPLICATION

    Customer Segmentation

    Market basket analysis

    Risk management Fraud detection

    Demand prediction

    Delinquency Tracking