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Chapter 1. Introduction

The document provides an overview of data mining, defining it as the process of discovering patterns and correlations in large datasets to inform decision-making. It discusses the need for data mining due to the rapid growth of data and the complexity of analyzing it, as well as the various tasks and techniques involved, including data preprocessing and the distinction between descriptive and predictive data mining. Additionally, it outlines the applications of data mining across different sectors such as finance, retail, and telecommunications.

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0% found this document useful (0 votes)
4 views29 pages

Chapter 1. Introduction

The document provides an overview of data mining, defining it as the process of discovering patterns and correlations in large datasets to inform decision-making. It discusses the need for data mining due to the rapid growth of data and the complexity of analyzing it, as well as the various tasks and techniques involved, including data preprocessing and the distinction between descriptive and predictive data mining. Additionally, it outlines the applications of data mining across different sectors such as finance, retail, and telecommunications.

Uploaded by

damapeter20
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Data

Engr. Sifaeli Sabaya


Mr. Christopher James,

Mining Faculty of Informatics

Computer Science and

Introduction Mathematics Department


Introduction to Data Mining

●Data mining is the process of discovering patterns,


correlations, and anomalies in large datasets to make
data -driven decisions.
●Helps organizations turn raw data into useful
information.
●Customer purchase patterns, fraud detection, market
analysis.

Prepared by Christopher James 2


What is Data Mining?
●Discovering meaningful patterns and trends using
some mathematical algorithm on huge amount of
stored data
●Extraction of interesting, non -trivial, implicit,
previously unknown and potentially useful
information or patterns from data
●Analysis of data and the use of software techniques
for finding patterns and regularities in sets of data

Prepared by Christopher James 3


What is Data Mining?
●Data mining is the exploration and analysis of large quantities of
data in order to discover valid, novel, potentially useful, and
ultimately understandable patterns in data.

●Valid: The patterns hold in general.


●Novel: We did not know the pattern beforehand.
●Useful: We can devise actions from the patterns.
●Understandable: We can interpret and comprehend the
patterns.
Prepared by Christopher James 4
What is Data Mining?
●Process of discovering patterns, correlations , and anomalies in
large datasets to make decisions and predictions .

●Examples of tasks addressed by Data Mining


○Predictive Modeling (classification, regression)
○Segmentation (Data Clustering )
○Summarization
○Visualization

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The Need for Data Mining
●The amount of raw data stored in corporate data warehouses is
growing rapidly .
●There is too much data and complexity that might be relevant to a
specific problem.
●Data mining promises to bridge the analytical gap by giving
knowledge workers the tools to navigate this complex analytical
space .
●The need for information has resulted in the proliferation of data
warehouses that integrate information multiple sources to support
decision making.
●Often include data from external sources , such as customer
demographics and household information.

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● Changes in the Business Environment
● Customers becoming more demanding
● Markets are saturated
● Databases today are huge:
● More than 1,000,000
entities/records/rows
● From 10 to 10,000
fields/attributes/variables
Data Mining


Gigabytes and terabytes
Databases a growing at an
Motivation
unprecedented rate
● Decisions must be made rapidly
● Decisions must be made with maximum
knowledge

Prepared by Christopher James Prepared by Christopher James 7


Data Mining Vs. Database Query
Data Mining Da ta b a se
●inte re sting p a tte rns a nd fa c ts ● Norm a l q ue rie s from the
suc h a s wha t a re the im p orta nt d a ta b a se suc h a s wha t is a n
tre nd s in se lls a ve ra g e turnove r
● m ore fa ste r tha n q ue ry in tre nd ● If we know e xa c tly wha t we a re
a nd p a tte rn a na lysis looking for, we use q ue ry
● use s a lg orithm like m a c hine
le a rning , g e ne tic a lg orithm
● If we know only va g ue ly wha t we
a re looking for we use d a ta
m ining .
Prepared by Christopher James 8
● Da ta Cle a ning : Re m ove or c orre c t noisy
d a ta .
● Da ta Inte g ra tion: Com b ine d a ta from
m ultip le sourc e s. Steps in KDD
● Da ta Se le c tion: Extra c t re le va nt d a ta for
a na lysis. Knowledge Discovery in
● Da ta Tra nsform a tion: Conve rt d a ta into Databases
a suita b le form a t.
● Da ta Mining : Ap p ly a lg orithm s to find
p a tte rns.
● Pa tte rn Eva lua tion: Id e ntify inte re sting
p a tte rns.
● Knowle d g e Re p re se nta tion: Visua lize
a nd p re se nt find ing s.

Prepared by Christopher James Prepared by Christopher James 9


System
Architecture ● Data Sources: Databases,
data warehouses, web.
● Data Mining Engine: Core
modules for pattern
discovery.
● Pattern Evaluation Module:
Ensures relevant patterns.
● User Interface: Allows users
to interact with the system.

Prepared by Christopher James 10


● Qua lita tive : Nom ina l
(c a te g orie s), Bina ry (two
sta te s), Ord ina l (ord e re d
va lue s).
Types of Data in
Data Mining
● Qua ntita tive : Disc re te
(c ounta b le ), Continuous
(m e a sura b le ).

Prepared by Christopher James Prepared by Christopher James 11


Qualitative Attributes
●Nominal/categorical Attributes: Values represent categories or
states with no inherent order. Example: Colors, names
●Binary Attributes: Only two possible values or states
○Symmetric: Both values are equally important (e.g., Gender)
○Asymmetric: Values are not equally important (e.g., Pass/Fail)
●Ordinal Attributes: Values have a meaningful sequence or
ranking. Magnitude between values is not known. Example:
Survey ratings (e.g., Poor, Fair, Good)

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Quantitative Attributes
●Numeric Attributes
○Measurable quantities represented in integer or real values
○Interval -scaled: Differences are interpretable, but no true zero point
(e.g., Temperature in Celsius)
○Ratio-scaled: Has a true zero point, allowing for meaningful ratios
(e.g., Weight, Height)
●Discrete Attributes: Finite or countably infinite set of values. Example:
Number of students in a class
●Continuous Attributes: Infinite number of states, often represented as
float values. Example: Height, weight
Prepared by Christopher James 13
● Descriptive Tasks: Characterize
general properties of data.
Example: Summary of

Data Mining customer demographics.


Predictive Tasks: Make
Functionalities

predictions based on existing


data. Example: Predicting sales
for the next quarter.

Prepared by Christopher James 14


Descriptive Data Mining
●Characterizes the general properties of data in the database
●Finds important patterns or information in data
●Mostly used during data exploration
●It answered following questions:
●What is in the data? What does( n’t) it look like? Are there any
unusual patterns? What does the data suggest for customer
segmentation?
●Functionalities: Clustering, Summarization, Visualization, and
Association
Prepared by Christopher James 15
Predictive Data Mining
●Where
X: Vectors of independent variables
Y:Dependent Variable
●It answered following type of questions: Who is likely to
respond to next product?
●Which customers are likely to leave in the next six months?
●Used to predict outcomes whose inputs are known but the
output values are not realized yet.

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● By Da ta b a se Typ e : Re la tiona l,
tra nsa c tiona l, d a ta wa re house .

Classification of ● By Te c hniq ue s Use d : Ma c hine


le a rning , sta tistic al a na lysis.
Data Mining Systems
● By Ap p lic a tions: Fina nc e ,
he a lthc a re , m a rke ting .

Prepared by Christopher James 17


Data Preprocessing
●Data cleaning: Fill in missing values, smooth noisy data,
identify or remove outliers, and resolve inconsistencies
●Data integration: Integration of multiple databases, data
cubes, or files
●Data transformation: Normalization and aggregation
●Data reduction: Obtains reduced representation in
volume but produces the same or similar analytical
results

Prepared by Christopher James 18


Why Data Preprocessing?
●Data in the real world is dirty
○Incomplete : lacking attribute values, lacking certain attributes
of interest, or containing only aggregate data
○Noisy : containing errors or outliers
○Inconsistent : containing discrepancies in codes or names
●No quality data, no quality mining results!
○Quality decisions must be based on quality data
○Data warehouse needs consistent integration of quality data

Prepared by Christopher James 19


Data Preprocessing: Terminologies
●Population - the collection of all individuals or items under consideration in a
statistical study
●Sample - that part of the population from which information is collected
●Parameter – statistical description of the population
●Variable – characteristic that varies from one item to another e.g.
Quantitative (numerical) Qualitative (categorical)
●Data: Observing the values of the variables yield data
●Observation – individual piece of data
●Data matrix – collection of observations for variable Data matrix k variables
measured in sample with the size of n

Prepared by Christopher James 20


Data Quality problems
●What kinds of data quality problems?
●How can we detect problems with the data?
●What can we do about these problems?

●Examples of data quality problems:


 Noise a nd outlie rs
 m issing va lue s
 d up lic a te d a ta
Prepared by Christopher James 21
Noise
• Noise refers to modification of original values
– Examples: distortion of a person’s voice when talking on a poor phone and
“snow” on television screen

Two Sine Waves Two Sine Waves + Noise

Prepared by Christopher James


Outliers
●Outliers are data objects with characteristics that are
considerably different than most of the data set

Prepared by Christopher James 23


How to Handle Noisy Data?
●Binning method:
●first sort data and partition into ( equi -depth) bins
●then one can smooth by bin means, smooth by bin median
●Equal-width (distance) partitioning:
●It divides the range into N intervals of equal size: uniform grid
●if A and B are the lowest and highest values of the attribute, the
●width of intervals will be: W = (B -A)/N.
●Equal-depth (frequency) partitioning:
●It divides the range into N intervals, each containing approximately same number of samples
●Managing categorical attributes can be tricky.
●Combined computer and human inspection
●– detect suspicious values and check by human
Prepared by Christopher James 24
Missing Values
●Reasons for missing values
○Information is not collected (e.g., people decline to give their age and
weight)
○Attributes may not be applicable to all cases (e.g., annual income is not
applicable to children)
●Handling missing values
○Eliminate Data Objects
○Estimate Missing Values
○Ignore the Missing Value During Analysis
○Replace with all possible values (weighted by their probabilities)

Prepared by Christopher James 25


How to Handle Missing Data?
●Ignore the tuple: usually done when class label is missing (assuming the
tasks in classification —not effective when the percentage of missing values
per attribute varies considerably.
●Fill in the missing value manually: tedious + infeasible?
●Use a global constant to fill in the missing value: e.g., “unknown”, a new
class?!
●Use the attribute mean to fill in the missing value
●Use the attribute mean for all samples belonging to the same class to fill in
●the missing value: smarter
●Use the most probable value to fill in the missing value: inference -based
such as Bayesian formula or decision tree
Prepared by Christopher James 26
Duplicate Data
●Data set may include data objects that are duplicates, or
almost duplicates of one another. Major issue when merging
data from heterogeous sources

●Examples:
●Same person with multiple email addresses

●Data cleaning
●Process of dealing with duplicate data issues
Prepared by Christopher James 27
Data Mining Application Areas

●Finance: Fraud detection, risk management.


●Retail: Customer behavior analysis.
●Telecommunications: Fraud detection, resource
optimization.
●Biological Data: Genomics, protein pathways.
●Visual Examples: Show applications with industry
icons.

Prepared by Christopher James 28


Activities & Practice

●Activity 1: List possible applications of data mining in


your area of interest.
●Activity 2: Identify examples of qualitative and
quantitative data in your surroundings.

Prepared by Christopher James 29

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