data mining overview. lecture objectives after this lecture, you should be able to: 1.explain key...
TRANSCRIPT
Data Mining
Overview
Lecture Objectives
After this lecture, you should be able to:
1. Explain key data mining tasks in your own words.
2. Draw an overview of the Data Mining Process.
3. Discuss one broad business application of data mining.
4. Explain one way to evaluate effectiveness of a Data Mining project.
Data Mining Tasks
1. Prediction / Classification
2. Segmentation
3. Association
Course Overview/Techniques UsedData PreparationPrediction/Classification
Discriminant AnalysisLogistic RegressionArtificial Neural NetworksClassification Trees (CART, CHAID)
SegmentationJudgementFactor AnalysisCluster Analysis
AssociationMarket Basket AnalysisOther Correlation Based techniques
Data Mining ProcessSource: CRISP-DM (SPSS.com website)
Application in Financial Services
Product Planning
Customer Acquisitio
n
Collections
and Recovery
Customer Manage-
ment
Customer Valuation
Stage 1 Stage 2
Stage 4
Stage 3
Measuring Effectiveness: Lift/Gains Chart
Dr. Satish Nargundkar
Percent of population targeted
Perc
en
t of
pote
nti
al
resp
on
ders
cap
ture
d
100
1000
90
45
45
Targeting
Random mailing
Discussion
1. Can you think of other applications?2. What are some limitations of Data Mining?3. What are future possibilities?