9 Data Mining - Classification & Prediction
9 Data Mining - Classification & Prediction
There are two forms of data analysis that can be used for extracting models describing important
classes or to predict future data trends. These two forms are as follows −
Classification
Prediction
Classification models predict categorical class labels; and prediction models predict continuous
valued functions. For example, we can build a classification model to categorize bank loan
applications as either safe or risky, or a prediction model to predict the expenditures in dollars of
potential customers on computer equipment given their income and occupation.
What is classification?
Following are the examples of cases where the data analysis task is Classification −
A bank loan officer wants to analyze the data in order to know which customer (loan applicant)
are risky or which are safe.
A marketing manager at a company needs to analyze a customer with a given profile, who will
buy a new computer.
In both of the above examples, a model or classifier is constructed to predict the categorical labels.
These labels are risky or safe for loan application data and yes or no for marketing data.
What is prediction?
Following are the examples of cases where the data analysis task is Prediction −
Suppose the marketing manager needs to predict how much a given customer will spend during a
sale at his company. In this example we are bothered to predict a numeric value. Therefore the data
analysis task is an example of numeric prediction. In this case, a model or a predictor will be
constructed that predicts a continuous-valued-function or ordered value.
Note − Regression analysis is a statistical methodology that is most often used for numeric
prediction.
https://www.tutorialspoint.com/data_mining/dm_classification_prediction.htm 1/4
3/10/2023 Data Mining - Classification & Prediction
With the help of the bank loan application that we have discussed above, let us understand the
working of classification. The Data Classification process includes two steps −
https://www.tutorialspoint.com/data_mining/dm_classification_prediction.htm 2/4
3/10/2023 Data Mining - Classification & Prediction
Data Cleaning − Data cleaning involves removing the noise and treatment of missing values.
The noise is removed by applying smoothing techniques and the problem of missing values is
solved by replacing a missing value with most commonly occurring value for that attribute.
Relevance Analysis − Database may also have the irrelevant attributes. Correlation analysis
is used to know whether any two given attributes are related.
Data Transformation and reduction − The data can be transformed by any of the following
methods.
Note − Data can also be reduced by some other methods such as wavelet transformation, binning,
histogram analysis, and clustering.
https://www.tutorialspoint.com/data_mining/dm_classification_prediction.htm 3/4
3/10/2023 Data Mining - Classification & Prediction
Accuracy − Accuracy of classifier refers to the ability of classifier. It predict the class label
correctly and the accuracy of the predictor refers to how well a given predictor can guess the
value of predicted attribute for a new data.
Speed − This refers to the computational cost in generating and using the classifier or
predictor.
Robustness − It refers to the ability of classifier or predictor to make correct predictions from
given noisy data.
Scalability − Scalability refers to the ability to construct the classifier or predictor efficiently;
given large amount of data.
https://www.tutorialspoint.com/data_mining/dm_classification_prediction.htm 4/4