data mining. 2 models created by data mining linear equations rules clusters graphs tree structures...
TRANSCRIPT
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Data Mining
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Models Created by Data Mining
• Linear Equations
• Rules
• Clusters
• Graphs
• Tree Structures
• Recurrent Patterns
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Knowledge Discovery in Databases (KDD)
• Select target data
• Preprocess data
• Transform (if necessary)
• Data mine information
• Interpret discovered structures
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Dependant and Independent Variables
• Dependant Variable - Attribute to be predicted.
• Independent Variable - Attributes used for making the prediction.
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Fields Contributing to Data Mining
• Database Technology• Statistics• Machine Learning• High Performance Computing• Pattern Recognition• Neural Networks• Data Visualization• Information Retrieval
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Applications of Data Mining
• Decision Making
• Process Control
• Information Management
• Query Processing
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Methods of Data Reduction
• Drill-down analysis
• Clustering
• Aggregation
• Simple Tabulation
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Exploratory Data Analysis (EDA)
• Distributions of Variables
• Correlation Matrices
• Multi-way Frequency Tables
• Cluster Analysis
• Classification Trees
• Other multivariate techniques
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Statistical Methods Used in Data Mining
• Regression Analysis
• Standard Distribution
• Cluster Analysis
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Industries Using Data Mining
• Banking
• Insurance
• Medicine
• Retail
• Security
• Sciences
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Financial Uses of Data Mining
• Fraud Detection
• Money Laundering Detection
• Risk Management
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Medical Uses of Data Mining
• Chemical Compounds
• Genetic Material
• Predictive Treatment Models
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Retail Uses of Data Mining
• Direct Marketing
• Store Design
• Store Operations
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Security Uses of Data Mining
• Assess crime patterns
• Homeland Security
• Identification of suspicious activities
• Pre-screening
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Scientific Uses of Data Mining
• Image analysis
• Classification of large data sets
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Other Novel Uses for Data Mining
• NBA’s Advanced Scout Program
• Firefly
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Predictive Analytics
• An advanced form of data mining that makes prediction models for the behavior of variables in large data sets.
• Highly specialized for each application
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Uses of Predictive Analytics
• Cost-Benefit Analysis
• Predicting Customer Behavior
• Reducing Costs
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Financial Uses of Predictive Analytics
• Credit Ratings
• Economic Prediction Models
• Federal Reserve
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Text Mining
• Extracts data from unstructured data sets
• Allows for data mining of large data sets that are not databases
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Sentiment Analysis
• Uses semantic techniques and keywords to detect favorable and unfavorable opinions toward specific subjects.
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Privacy Concerns with Data Mining
• Big Brother
• Puts too much power into the hands of Governmental Security Forces
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False Positives in Data Mining for Security Reasons
• Costs the people and the Government
• Subject of controversy and civilian mistrust
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Data Mining as Another Tool for Security
• Government doesn’t wish to interfere in civilian life
• Actual intrusions of privacy incur legal costs
• Useful for correlating with other sources of data
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Visual and Speech Processing
• Examining large amounts of real-time input for specific data and relationships between data
• Requires a certain amount of predictive modeling
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Data Mining is an Essential Use of Computers
• It makes the previously impossible possible
• Powerful tool for progress and understanding
• Lasting Impact