business analytics decision tree in r
TRANSCRIPT
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www.edureka.co/r-for-analytics
View Business Analytics with R course details at www.edureka.co/r-for-analytics
Business Analytics with R
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Objectives
What is data mining
What is Business Analytics
Stages of Analytics / data mining
What is R
overview of Machine Learning
What is Clustering
What is K-means Clustering
Use-case
At the end of this session, you will be able to
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Data mining ??
Generally, data mining is the process of studying data from maximum possible dimensions and summarizing it into
useful information
Technically, data mining is the process of finding correlations or patterns among dozens of fields in large data
generated from business
Or you can say, data mining is the process finding useful information from the data and then devising knowledge
out of it for improving future of our business
» Data ??
Data are any facts, numbers, or text is getting produced by existing system
» Information ??
The patterns, associations, or relationships among all this data can provide information
» Knowledge ??
Information can be converted into knowledge about historical patterns and future trends. For example summary of
sales in off season may help to start some offers in that period to increase sales
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Business Analytics
Why Business Analytics is getting popular these days ?
Cost of storing data Cost of processing data
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Cross Industry standard Process for data mining ( CRISP – DM )
Stages of Analytics / Data Mining
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What is R
R is Programming Language
R is Environment for Statistical Analysis
R is Data Analysis Software
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R : Characteristics
Effective and fast data handling and storage facility
A bunch of operators for calculations on arrays, lists, vectors etc
A large integrated collection of tools for data analysis, and visualization
Facilities for data analysis using graphs and display either directly at the computer or paper
A well implemented and effective programming language called ‘S’ on top of which R is built
A complete range of packages to extend and enrich the functionality of R
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Data Visualization in RThis plot represents the
locations of all the traffic signals in the city.
It is recognizable as Toronto without any other geographic data being plotted - the structure of the city comes out in the data alone.
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Who Uses R : Domains
Telecom
Pharmaceuticals
Financial Services
Life Sciences
Education, etc
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Types of Learning
Supervised Learning Unsupervised Learning
1. Uses a known dataset to make predictions.
2. The training dataset includes input data and response values.
3. From it, the supervised learning algorithm builds a model to make predictions of the response values for a new dataset.
1. Draw inferences from datasets consisting of input data without labeled responses.
2. Used for exploratory data analysis to find hidden patterns or grouping in data
3. The most common unsupervised learning method is cluster analysis.
Machine Learning
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Common Machine Learning Algorithms
Types of Learning
Supervised Learning
Unsupervised Learning
Algorithms
Naïve Bayes Support Vector Machines Random Forests Decision Trees
Algorithms
K-means
Fuzzy Clustering
Hierarchical Clustering
Gaussian mixture models
Self-organizing maps
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What is Decision Trees?
Organizing data into clusters such that there is:
High intra-cluster similarity Low inter-cluster similarity Informally, finding natural groupings among objects
http://en.wikipedia.org/wiki/Cluster_analysis
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Decision Trees
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What is Decision Trees??
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How to Build Decision Trees??
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Algorithm for Decision Tree Induction
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Decision Tree Example??
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Decision Tree 1: Root “student”
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Decision Tree 1: Root “student”
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Decision Tree 1: Root “student”
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Decision Tree 1: Root “student”
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Decision Tree 1: Root “student”
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Decision Tree 1: Root “student”
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Decision Tree 1: Root “student”
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Decision Tree 2: Root “Income”
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Decision Tree 2: Root “Income”
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Decision Tree 2: Root “Income”
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Decision Tree 2: Root “Income”
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Decision Tree 2: Root “Income”
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Decision Tree 2: Root “Income”
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Decision Tree 2: Root “Income”
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Decision Trees Case-study
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Let’s consider a Company dataset with around 10 variables and 400 records.
The attributes are as follows:
Sales
Competitor Price
Income
Advertising
Population
Price
Shelf Location at stores
Age
Education
Urban
US
About the data:
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The company dataset looks like this:
Problem Statement:
A cloth manufacturing company is interested to know about the segment or attributes causes high sale.
Approach - A decision tree can be built with target variable Sale (we will first convert it in categorical variable) & all other variable will be independent in the analysis.
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DemoMore Information on R setup and applications at:
http://www.edureka.in/blog/category/business-analytics-with-r/
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Module 1 » Introduction to Business Analytics
Module 2» Introduction to R Programming
Module 3» Data Manipulation in R
Module 4» Data Import Techniques in R
Module 5 » Exploratory Data Analysis
Module 6» Data Visualization in R
Course Topics
Module 7» Data mining: Clustering Techniques
Module 8» Data Mining: Association rule mining and
Sentiment analysis
Module 9» Linear and Logistic Regression
Module 10» Annova and Predictive Analysis
Module 11» Data Mining: Decision Trees and Random forest
Module 12» Final Project Business Analytics with R class –
Census Data
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