1. Data mining By Aung Oo

2. What is Data Mining? • Different perspectives: CS, Business, IT • As a field of research in CS: • Science of extracting useful information from large data sets or databases • Also known as • Knowledge Discovery and Data Mining (KDD)Knowledge Discovery in Databases (KDD)

3. Knowledge Discovery and Data Mining (KDD) • KDD can be said to lie at the intersection of statistics, machine learning, data bases, pattern recognition, information retrieval and artificial intelligence.

4. Data Mining Definitions • Analysis of datasets to find unsuspected relationships • Summarize data in novel ways that are understandable useful to data owner • Extraction of knowledge from data • non-trivial extraction of implicit, previously unknown & potentially useful knowledge from data • Process of discovering patterns: • automatically or semi-automatically, in large quantities of data • Patterns discovered must be useful: meaningful in that they lead to some advantage, usually economic

5. Why Data Mining? • Large datasets are common: due to advances in digital data acquisition and storage technology. • Automatic data production leads to need for automatic data consumption • Large databases mean vast amounts of information • Difficulty lies in accessing it • Business • Supermarket transactions • Credit card usage records • Telephone call details • Government statistics • Scientific • Images of astronomical bodies • Molecular databases • Medical records

6. Why Data Mining? • Data mining is ready for application in the business community because it is supported by three technologies that are now sufficiently mature: • Massive data collection • Powerful multiprocessor computers • Data mining algorithms

7. Example of Data Mining • If a store tracks the purchases of a customer and notices that a customer buys a lot of silk shirts, the data mining system will make a correlation between that customer and silk shirts. • The store may begin direct mail marketing of silk shirts to that customer or it may alternatively attempt to get the customer to buy a wider range of products . • Another example: analysts found that beers and diapers were often bought together . • So place the high-profit diapers next to the high-profit beers. • This technique is often referred to as "Market Basket Analysis".

8. Steps in the Evolution of Data Mining

9. The Scope of Data Mining • Automated prediction of trends and behaviors. • Data mining uses data on past promotional mailings to identify the targets most likely to maximize return on investment in future mailings. • Automated discovery of previously unknown patterns. • An example of pattern discovery is the analysis of retail sales data to identify seemingly unrelated products that are often purchased together. • More columns. • High performance data mining allows users to explore the full depth of a database, without pre-selecting a subset of variables. • More rows. • Larger samples yield lower estimation errors and variance, and allow users to make inferences about small but important segments of a population.

10. Data Mining vs. Statistics • Objective of data mining exercise plays no role in data collection strategy • In this way it differs from much of statistics • For this reason, data mining is referred to as secondary data analysis • KDD more complicated than initially thought • 80% preparing data • 20% mining data

11. Query: Data Base vs. Data Mining • Data Base: When you know exactly what you are looking for. • Data Mining: When you only vaguely know what you are looking for.

12. Data Mining Tasks and Techniques • Not so much a single technique • Idea that there is more knowledge hidden in the data than shows itself on the surface • Any technique that helps to extract more out of data is useful • Five major task types: 1. Exploratory Data Analysis (Visualization) 2. Descriptive Modeling (Density estimation, Clustering) 3. Predictive Modeling (Classification and Regression) 4. Discovering Patterns and Rules (Association rules) 5. Retrieval by Content (Retrieve items similar to pattern of interest)

13. Privacy concerns • For example, if an employer has access to medical records, they may screen out people who have diabetes or have had a heart attack. Screening out such employees will cut costs for insurance, but it creates ethical and legal problems. • Essentially, data mining gives information that would not be available otherwise. It must be properly interpreted to be useful. When the data collected involves individual people, there are many questions concerning privacy, legality, and ethics.

14. Notable Uses of Data Mining • Data mining has been cited as the method by which the U.S. Army intelligence unit, Able Danger, supposedly had identified the 9/11 attack leader, Mohamed Atta, and three other 9/11 hijackers as possible members of an al Qaeda cell operating in the U.S. more than a year before the attack.

15. References • http://www.cedar.buffalo.edu/~srihari/CSE626 • http://en.wikipedia.org/wiki/Data_Mining • http://www.thearling.com/text/dmwhite/dmwhite.htm