Data Warehousing and Mining

• Overview
• Data Warehousing
• Online Analytical Processing
• Data Mining
Overview
• Data analytics: the processing of data to
infer patterns, correlations, or models for
prediction
• Primarily used to make business decisions
• Per individual customer
• E.g., what product to suggest for purchase
• Across all customers
• E.g., what products to manufacture/stock, in what
quantity
• Critical for businesses today
Overview (Cont.)
• Common steps in data analytics
• Gather data from multiple sources into one location
• Data warehouses also integrated data into common
schema
• Data often needs to be extracted from source formats,
transformed to common schema, and loaded into the
data warehouse
• Can be done as ETL (extract-transform-load), or ELT
(extract-load-transform)
• Generate aggregates and reports summarizing
data
• Dashboards showing graphical charts/reports
Overview (Cont.)
• Online analytical processing (OLAP) systems
allow interactive querying
• Statistical analysis using tools such as R/SAS/SPSS
• Including extensions for parallel processing of big data
• Build predictive models and use the models for
decision making
Overview (Cont.)
• Predictive models are widely used today
• E.g., use customer profile features (e.g. income,
age, gender, education, employment) and past
history of a customer to predict likelihood of
default on loan
• and use prediction to make loan decision
• E.g., use past history of sales (by season) to
predict future sales
• And use it to decide what/how much to produce/stock
• And to target customers

• Other examples of business decisions:

• Which transactions are usually categorised as
suspicious?
Overview (Cont.)
• Machine learning techniques are key to
finding patterns in data and making predictions
• Data mining extends techniques developed
by machine-learning communities to run them
on very large datasets
• The term business intelligence (BI) is
synonym for data analytics
• The term decision support focuses on
reporting and aggregation
Data Warehousing
Data Warehousing
• Data sources often store only current data,
not historical data
• Corporate decision making requires a unified
view of all organizational data, including
historical data
• A data warehouse is a repository (archive)
of information gathered from multiple sources,
stored under a unified schema, at a single site
• Greatly simplifies querying, permits study of
historical trends
• Shifts decision support query load away from
transaction processing systems
Data Warehousing
Design Issues
• When and how to gather data
• Source driven architecture: data sources
transmit new information to warehouse
• either continuously or periodically (e.g., at night)
• Destination driven architecture: warehouse
periodically requests new information from data
sources
• Synchronous vs asynchronous replication
• Keeping warehouse exactly synchronized with data
sources (e.g., using two-phase commit) is often too
expensive
• Usually OK to have slightly out-of-date data at
warehouse
Design Issues Conti…
• Data/updates are periodically downloaded form online
transaction processing (OLTP) systems.
• What schema to use
• Schema integration
More Warehouse Design Issues
• Data transformation and data cleansing
• E.g., correct mistakes in addresses (misspellings,
zip code errors)
• Merge address lists from different sources and
purge duplicates
• How to propagate updates
• Warehouse schema may be a (materialized) view
of schema from data sources
• View maintenance

• What data to summarize

• Raw data may be too large to store on-line
• Aggregate values (totals/subtotals) often suffice
More Warehouse Design Issues
Conti..
• Queries on raw data can often be transformed by
query optimizer to use aggregate values
Multidimensional Data and
Warehouse Schemas
• Data in warehouses can usually be divided
into
• Fact tables, which are large
• E.g, sales(item_id, store_id, customer_id, date, number,
price)
• Dimension tables, which are relatively small
• Store extra information about stores, items, etc.

• Attributes of fact tables can be usually viewed

as
Multidimensional Data and
Warehouse Schemas Conti…
• Measure attributes
• measure some value, and can be aggregated upon
• e.g., the attributes number or price of the sales relation
• Dimension attributes
• dimensions on which measure attributes are viewed
• e.g., attributes item_id, color, and size of the sales
relation
• Usually small ids that are foreign keys to dimension
tables
Data Warehouse Schema
Multidimensional Data and
Warehouse Schemas
• Resultant schema is called a star schema
• More complicated schema structures
• Snowflake schema: multiple levels of dimension tables
• May have multiple fact tables

• Typically
• fact table joined with dimension tables and then
• group-by on dimension table attributes, and then
• aggregation on measure attributes of fact table
Multidimensional Data and
Warehouse Schemas Conti…
• Some applications do not find it worthwhile
to bring data to a common schema
• Data lakes are repositories which allow data
to be stored in multiple formats, without
schema integration
• Less upfront effort, but more effort during
querying
Database Support for Data
Warehouses
• Data in warehouses usually append only, not
updated
• Can avoid concurrency control overheads
• Data warehouses often use column-oriented
storage
• E.g., a sequence of sales tuples is stored as follows
• Values of item_id attribute are stored as an array
• Values of store_id attribute are stored as an array,
• And so on
• Arrays are compressed, reducing storage, IO and
memory costs significantly
Database Support for Data
Warehouses Conti…
• Queries can fetch only attributes that they care
about, reducing IO and memory cost
• More details in Section 13.6
• Data warehouses often use parallel storage
and query processing infrastructure
• Distributed file systems, Map-Reduce, Hive, …
OLAP
Data Analysis and OLAP
• Online Analytical Processing (OLAP)
• Interactive analysis of data, allowing data to
be summarized and viewed in different ways
in an online fashion (with negligible delay)
• We use the following relation to illustrate
OLAP concepts
• sales (item_name, color, clothes_size,
quantity)
This is a simplified version of the sales fact table
joined with the dimension tables, and many
attributes removed (and some renamed)
Example sales relation

... ... ... ...

... ... ... ...
 Cross Tabulation of sales by item_name and color

• The table above is an example of a

cross-tabulation (cross-tab), also referred
to as a pivot-table.
• Values for one of the dimension attributes form the row headers
• Values for another dimension attribute form the column headers
• Other dimension attributes are listed on top
• Values in individual cells are (aggregates of) the values of the
dimension attributes that specify the cell.
Data Cube
• A data cube is a multidimensional
generalization of a cross-tab
• Can have n dimensions; we show 3 below
• Cross-tabs can be used as views on a data
cube
Online Analytical Processing Operations
• Pivoting: changing the dimensions used in a cross-tab
• E.g., moving colors to column names
• Slicing: creating a cross-tab for fixed values only
• E.g., fixing color to white and size to small
• Sometimes called dicing, particularly when values for

multiple dimensions are fixed.

• Rollup: moving from finer-granularity data to a coarser
granularity
• E.g., aggregating away an attribute

• E.g., moving from aggregates by day to aggregates by

month or year
• Drill down: The opposite operation - that of moving from
coarser-granularity data to finer-granularity data
Hierarchies on Dimensions
• Hierarchy on dimension attributes: lets
dimensions be viewed at different levels of
detail
• E.g., the dimension datetime can be used to
aggregate by hour of day, date, day of week,
month, quarter or year
Cross Tabulation With
Hierarchy
• Cross-tabs can be easily extended to deal
with hierarchies
• Can drill down or roll up on a hierarchy
• E.g. hierarchy: item_name category
 Relational Representation of
Cross-tabs
• Cross-tabs can be
represented as relations
• We use the value all to
represent aggregates.
• The SQL standard
actually uses null values
in place of all
• Works with any data type
• But can cause confusion
with regular null values.
OLAP IN SQL
Pivot Operation

• select *
from sales
pivot (
sum(quantity)
for color in ('dark','pastel','white')
)
order by item name;
Cube Operation
• The cube operation computes union of group by’s on every
subset of the specified attributes
• E.g., consider the query
select item_name, color, size, sum(number)
from sales
group by cube(item_name, color, size)
This computes the union of eight different groupings of the
sales relation:
{ (item_name, color, size), (item_name, color),
(item_name, size), (color, size),
(item_name), (color),
(size), ()}
where ( ) denotes an empty group by list.
• For each grouping, the result contains the null value for
attributes not present in the grouping.
Online Analytical Processing Operations
• Relational representation of cross-tab that we saw earlier, but
with null in place of all, can be computed by
select item_name, color, sum(number)
from sales
group by cube(item_name, color)
• The function grouping() can be applied on an attribute
• Returns 1 if the value is a null value representing all,
and returns 0 in all other cases.
select case when grouping(item_name) = 1 then 'all’
else item_name end as item_name,
case when grouping(color) = 1 then 'all’
else color end as color,
'all' as clothes size, sum(quantity) as quantity
from sales
group by cube(item name, color);
Online Analytical Processing
Operations
• Can use the function decode() in the select
clause to replace such nulls by
a value such as all
• E.g., replace item_name in first query by
decode( grouping(item_name), 1, ‘all’,
item_name)
Extended Aggregation (Cont.)
• The rollup construct generates union on every prefix of specified
list of attributes
• select item_name, color, size, sum(number)
from sales
group by rollup(item_name, color, size)
Generates union of four groupings:
{ (item_name, color, size), (item_name, color), (item_name),
()}
● Rollup can be used to generate aggregates at multiple levels of a
hierarchy.
● E.g., suppose table itemcategory(item_name, category) gives the
category of each item. Then
select category, item_name, sum(number)
from sales, itemcategory
where sales.item_name = itemcategory.item_name
group by rollup(category, item_name)
would give a hierarchical summary by item_name and by
Extended Aggregation (Cont.)
• Multiple rollups and cubes can be used in a single group by clause
• Each generates set of group by lists, cross product of sets gives
overall set of group by lists
• E.g.,
select item_name, color, size, sum(number)
from sales
group by rollup(item_name), rollup(color, size)
generates the groupings
{item_name, ()} X {(color, size), (color), ()}
= { (item_name, color, size), (item_name, color),
(item_name),
(color, size), (color), ( ) }
• select item_name, color, clothes_size, sum(quantity)
from sales
group by grouping sets ((color, clothes_size),
(clothes_size, item_name));
OLAP Implementation
• The earliest OLAP systems used
multidimensional arrays in memory to store
data cubes, and are referred to as
multidimensional OLAP (MOLAP) systems.
• OLAP implementations using only relational
database features are called relational OLAP
(ROLAP) systems
• Hybrid systems, which store some summaries
in memory and store the base data and other
summaries in a relational database, are called
hybrid OLAP (HOLAP) systems.
OLAP Implementation (Cont.)
• Early OLAP systems precomputed all possible aggregates in order
to provide online response
• Space and time requirements for doing so can be very high

• 2n combinations of group by
• It suffices to precompute some aggregates, and compute
others on demand from one of the precomputed aggregates
• Can compute aggregate on (item_name, color) from an
aggregate on (item_name, color, size)
• For all but a few “non-decomposable” aggregates such
as median
• is cheaper than computing it from scratch

• Several optimizations available for computing multiple aggregates

• Can compute aggregate on (item_name, color) from an
aggregate on (item_name, color, size)
• Can compute aggregates on (item_name, color, size),
(item_name, color) and (item_name) using a single sorting
of the base data
Reporting and Visualization
• Reporting tools help create formatted reports
with tabular/graphical representation of data
• E.g., SQL Server reporting services, Crystal Reports
• Data visualization tools help create
interactive visualization of data
• E.g., Tableau, FusionChart, plotly, Datawrapper,
Google Charts, etc.
• Frontend typically based on HTML+JavaScript
DATA MINING
Data Mining
• Data mining is the process of semi-automatically
analyzing large databases to find useful patterns
• Similar goals to machine learning, but on very large
volumes of data
• Part of the larger area of knowledge discovery in
databases (KDD)
• Some types of knowledge can be represented as rules
• More generally, knowledge is discovered by applying
machine learning techniques on past instances of
data, to form a model
• Model is then used to make predictions for new
instances
Types of Data Mining Tasks
• Prediction based on past history
• Predict if a credit card applicant poses a good credit risk, based
on some attributes (income, job type, age, ..) and past history
• Predict if a pattern of phone calling card usage is likely to be
fraudulent
• Some examples of prediction mechanisms:
• Classification
• Items (with associated attributes) belong to one of several
classes
• Training instances have attribute values and classes
provided
• Given a new item whose class is unknown, predict to which
class it belongs based on its attribute values
• Regression formulae
• Given a set of mappings for an unknown function, predict
the function result for a new parameter value
Data Mining (Cont.)
• Descriptive Patterns
• Associations
• Find books that are often bought by “similar” customers.
If a new such customer buys one such book, suggest the
others too.
• Associations may be used as a first step in detecting
causation
• E.g., association between exposure to chemical X and cancer,
• Clusters
• E.g., typhoid cases were clustered in an area surrounding
a contaminated well
• Detection of clusters remains important in detecting
epidemics
Classification Rules
• Classification rules help assign new objects to classes.
• E.g., given a new automobile insurance applicant, should he
or she be classified as low risk, medium risk or high risk?
• Classification rules for above example could use a variety of
data, such as educational level, salary, age, etc.
• ∀ person P, P.degree = masters and P.income > 75,000

⇒ P.credit =
excellent
• ∀ person P, P.degree = bachelors and

(P.income ≥ 25,000 and P.income ≤ 75,000)

⇒ P.credit =
good
• Rules are not necessarily exact: there may be some
misclassifications
• Classification rules can be shown compactly as a decision tree.
Decision Tree Classifiers
Decision Trees
• Each internal node of the tree partitions the data into
groups based on a partitioning attribute, and a
partitioning condition for the node
• Leaf node:
• all (or most) of the items at the node belong to the
same class, or
• all attributes have been considered, and no further
partitioning is possible.
• Traverse tree from top to make a prediction
• Number of techniques for constructing decision tree
classifiers
• We omit details
Bayesian Classifiers
• Bayesian classifiers use Bayes theorem,
which says
p ( cj | d ) = p ( d | c j ) p ( cj )
p (d)
where
p (cj | d) = probability of instance d
being in class cj,
p (d | cj ) = probability of generating
instance d given class cj,
p (cj ) = probability of occurrence
of class cj, and
p (d) = probability of instance d
occuring
Naïve Bayesian Classifiers
• Bayesian classifiers require
• computation of p (d | cj )
• precomputation of p (cj )
• p (d) can be ignored since it is the same for all classes
• To simplify the task, naïve Bayesian classifiers assume
attributes have independent distributions, and thereby
estimate
p (d | cj) = p (d1 | cj ) * p (d2 | cj ) * ….* (p (dn | cj )
• Each of the p (d | c ) can be estimated from a
i j
histogram on di values for each class cj
• the histogram is computed from the training
instances
• Histograms on multiple attributes are more expensive to

compute and store

Support Vector Machine
Classifiers
• Simple 2-dimensional example:
• Points are in two classes
• Find a line (maximum margin line) s.t. line
divides two classes, and distance from nearest point
in either class is maximum
Support Vector Machine
• In n-dimensions points are divided by a plane, instead of a
line
• SVMs can be used separators that are curve, not
necessarily linear, by transforming points before
classification
• Transformation functions may be non-linear and are

called kernel functions

• Separator is a plane in the transformed space, but maps

to curve in original space

• There may not be an exact planar separator for a given set
of points
• Choose plane that best separates points

• N-ary classification can be done by N binary classifications

Neural Network Classifiers
• Neural network has multiple layers
• Each layer acts as input to next later
• First layer has input nodes, which are
assigned values from input attributes
• Each node combines values of its inputs
using some weight function to compute its
value
• Weights are associated with edges

• For classification, each output value

indicates likelihood of the input instance
belonging to that class
• Pick class with maximum likelihood

• Weights of edges are key to classification

• Edge weights are learnt during training
phase
Neural Network Classifiers
• Value of a node may be linear
combination of inputs, or may be a
non-linear function
• E.g., sigmoid function

• Backpropagation algorithm works

as follows
• Weights are set randomly initially

• Training instances are processed one

at a time
• Output is computed using current
weights
• If classification is wrong, weights
are tweaked to get a higher score
for the correct class
Neural Networks (Cont.)
• Deep neural networks have a large number of
layers with large number of nodes in each layer
• Deep learning refers to training of deep neural
network on very large numbers of training
instances
• Each layer may be connected to previous layers in
different ways
• Convolutional networks used for image
processing
• More complex architectures used for text
processing, and machine translation, speech
recognition, etc.
Regression
• Regression deals with the prediction of a value, rather than a
class.
• Given values for a set of variables, X , X , …, X , we wish
1 2 n
to predict the value of a variable Y.
• One way is to infer coefficients a0, a1, a1, …, an such that
Y = a 0 + a 1 * X1 + a 2 * X2 + … + a n * Xn
• Finding such a linear polynomial is called linear regression.
• In general, the process of finding a curve that fits the data

is also called curve fitting.

• The fit may only be approximate
• because of noise in the data, or

• because the relationship is not exactly a polynomial

• Regression aims to find coefficients that give the best

possible fit.
Association Rules
• Retail shops are often interested in associations between different
items that people buy.
• Someone who buys bread is quite likely also to buy milk

• A person who bought the book Database System Concepts is

quite likely also to buy the book Operating System Concepts.

• Associations information can be used in several ways.
• E.g. when a customer buys a particular book, an online shop
may suggest associated books.
• Association rules:
bread ⇒ milk DB-Concepts, OS-Concepts ⇒ Networks
• Left hand side: antecedent, right hand side: consequent
• An association rule must have an associated population; the

population consists of a set of instances

• E.g. each transaction (sale) at a shop is an instance, and
the set of all transactions is the population
Association Rules (Cont.)
• Rules have an associated support, as well as an associated
confidence.
• Support is a measure of what fraction of the population
satisfies both the antecedent and the consequent of the rule.
• E.g., suppose only 0.001 percent of all purchases include

milk and screwdrivers. The support for the rule is milk ⇒

screwdrivers is low.
• Confidence is a measure of how often the consequent is
true when the antecedent is true.
• E.g., the rule bread ⇒ milk has a confidence of 80

percent if 80 percent of the purchases that include bread

also include milk.
• We omit further details, such as how to efficiently infer
association rules
Clustering
• Clustering: Intuitively, finding clusters of points in the given data such that
similar points lie in the same cluster
• Can be formalized using distance metrics in several ways
• Group points into k sets (for a given k) such that the average distance of
points from the centroid of their assigned group is minimized
• Centroid: point defined by taking average of coordinates in each
dimension.
• Another metric: minimize average distance between every pair of points
in a cluster
• Hierarchical clustering: example from biological classification
• (the word classification here does not mean a prediction mechanism)

chordata
mammalia reptilia

leopards humans snakes crocodiles

Clustering and Collaborative
Filtering
• Goal: predict what movies/books/… a person may be interested in,
on the basis of
• Past preferences of the person

• Preferences of other people

• One approach based on repeated clustering

• Cluster people based on their preferences for movies

• Then cluster movies on the basis of being liked by the same

clusters of people
• Again cluster people based on their preferences for (the newly
created clusters of) movies
• Repeat above till equilibrium

• Given new user

• Find most similar cluster of existing users and

• Predict movies in movie clusters popular with that user cluster
• Above problem is an instance of collaborative filtering
Other Types of Mining
• Text mining: application of data mining to textual documents
• Sentiment analysis
• E.g., learn to predict if a user review is positive or negative
about a product
• Information extraction
• Create structured information from unstructured textual

description or semi-structured data such as tabular displays

• Entity recognition and disambiguation
• E.g., given text with name “Michael Jordan” does the name

refer to the famous basketball player or the famous ML

expert
• Knowledge graph
• Can be constructed by information extraction from different

sources, such as Wikipedia

Best Splits
• Pick best attributes and conditions on which to
partition
• The purity of a set S of training instances can
be measured quantitatively in several ways.
• Notation: number of classes = k, number of
instances = |S|, k
p2i
fraction of instances in class
i- 1
i = p i.
• The Gini measure of purity is defined as
[ Gini (S) = 1 - ∑
• When all instances are in a single class, the Gini
value is 0
• It reaches its maximum (of 1 –1 /k) if each class
the same number of instances.
Best Splits (Cont.)
• Another measure of purity is the entropy measure, which
is defined as
k
pilog2 pi
entropy (S) = – ∑ i- 1

• When a set S is split into multiple sets Si, I=1, 2, …, r, we

can measure the purity ofr the resultant set of sets as:
|Si| purity (Si)
i= 1
purity(S1, S2, ….., Sr) = ∑ |S|

• The information gain due to particular split of S into Si, i =

1, 2, …., r
Information-gain (S, {S1, S2, …., Sr) = purity(S ) –
purity (S1, S2, … Sr)
Best Splits (Cont.)
r
|Si| |S |
lo i
• Measure of “cost” of a split: i- 1
|S| g2 |S|
Information-content (S, {S1, S2, …..,
Sr})) = – ∑

• Information-gain ratio =
Information-gain (S, {S1, S2, ……, Sr})

Information-content (S, {S1, S2, ….., Sr})

• The best split is the one that gives the
maximum information gain ratio
Finding Best Splits
• Categorical attributes (with no meaningful
order):
• Multi-way split, one child for each value
• Binary split: try all possible breakup of values into
two sets, and pick the best
• Continuous-valued attributes (can be sorted in
a meaningful order)
• Binary split:
• Sort values, try each as a split point
• E.g., if values are 1, 10, 15, 25, split at ≤1, ≤ 10, ≤ 15
• Pick the value that gives best split
• Multi-way split:
• A series of binary splits on the same attribute has roughly
equivalent effect
Decision-Tree Construction
Algorithm
Procedure GrowTree (S )
Partition (S );

Procedure Partition (S)

if ( purity (S ) > δp or |S| < δs ) then
return;
for each attribute A
evaluate splits on attribute A;
Use best split found (across all attributes) to
partition
S into S1, S2, …., Sr,
for i = 1, 2, ….., r
Partition (S );
Finding Association Rules
• We are generally only interested in association
rules with reasonably high support (e.g.,
support of 2% or greater)
• Naïve algorithm
1. Consider all possible sets of relevant items.
2. For each set find its support (i.e., count how many
transactions purchase all items in the set).
• Large itemsets: sets with sufficiently high support
3. Use large itemsets to generate association rules.
• From itemset A generate the rule A - {b } ⇒b for each b
∈ A.
• Support of rule = support (A).
• Confidence of rule = support (A ) / support (A - {b })
Finding Support
• Determine support of itemsets via a single pass on set of
transactions
• Large itemsets: sets with a high count at the end of the

pass
• If memory not enough to hold all counts for all itemsets use
multiple passes, considering only some itemsets in each pass.
• Optimization: Once an itemset is eliminated because its count
(support) is too small none of its supersets needs to be
considered.
• The a priori technique to find large itemsets:
• Pass 1: count support of all sets with just 1 item. Eliminate

those items with low support

• Pass i: candidates: every set of i items such that all its i-1

item subsets are large

• Count support of all candidates
Other Types of Associations
• Basic association rules have several limitations
• Deviations from the expected probability are more interesting
• E.g., if many people purchase bread, and many people purchase
cereal, quite a few would be expected to purchase both
• We are interested in positive as well as negative correlations
between sets of items
• Positive correlation: co-occurrence is higher than predicted
• Negative correlation: co-occurrence is lower than predicted
• Sequence associations / correlations
• E.g., whenever bonds go up, stock prices go down in 2 days

• Deviations from temporal patterns

• E.g., deviation from a steady growth

• E.g., sales of winter wear go down in summer

• Not surprising, part of a known pattern.

• Look for deviation from value predicted using past patterns
Hierarchical Clustering
• Agglomerative clustering algorithms
• Build small clusters, then cluster small clusters into
bigger clusters, and so on
• Divisive clustering algorithms
• Start with all items in a single cluster, repeatedly
refine (break) clusters into smaller ones
Clustering Algorithms
• Clustering algorithms have been designed to handle
very large datasets
• E.g., the Birch algorithm
• Main idea: use an in-memory R-tree to store points
that are being clustered
• Insert points one at a time into the R-tree, merging a
new point with an existing cluster if is less than some
δ distance away
• If there are more leaf nodes than fit in memory,
merge existing clusters that are close to each other
• At the end of first pass we get a large number of
clusters at the leaves of the R-tree
• Merge clusters to reduce the number of clusters