Lec 1
Lec 1
– purchases at department/
grocery stores, e-commerce
◆ Amazon handles millions of visits/day
– Bank/Credit Card transactions
Computers have become cheaper and more powerful
Competitive Pressure is Strong
– Provide better, customized services for an edge (e.g. in
Customer Relationship Management)
Improving health care and reducing costs Predicting the impact of climate change
Prediction Methods
– Use some variables to predict unknown or
future values of other variables.
Description Methods
– Find human-interpretable patterns that
describe the data.
From [Fayyad, et.al.] Advances in Knowledge Discovery and Data Mining, 1996
Data
Tid Refund Marital Taxable
Status Income Cheat
Milk
Class Employed
# years at
Level of Credit Yes
Tid Employed present No
Education Worthy
address
1 Yes Graduate 5 Yes
2 Yes High School 2 No No Education
3 No Undergrad 1 No
{ High school,
4 Yes High School 10 Yes Graduate
Undergrad }
10
… … … … …
Number of Number of
years years
Yes No Yes No
# years at
Level of Credit
Tid Employed present
Education Worthy
address
1 Yes Undergrad 7 ?
# years at 2 No Graduate 3 ?
Level of Credit
Tid Employed present 3 Yes High School 2 ?
Education Worthy
address
1 Yes Graduate 5 Yes … … … … …
10
Learn
Training
Classifier Model
Set
Fraud Detection
– Goal: Predict fraudulent cases in credit card
transactions.
– Approach:
◆ Use credit card transactions and the information
on its account-holder as attributes.
– When does a customer buy, what does he buy, how
often he pays on time, etc
◆ Label past transactions as fraud or fair
transactions. This forms the class attribute.
◆ Learn a model for the class of the transactions.
◆ Use this model to detect fraud by observing credit
card transactions on an account.
Introduction to Data Mining, 2nd Edition
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Tan, Steinbach, Karpatne, Kumar
Classification: Application 2
Late
Data Size:
• 72 million stars, 20 million galaxies
• Object Catalog: 9 GB
• Image Database: 150 GB
Use of K-means to
60
Land Cluster 2
partition Sea Surface
30 Temperature (SST) and
Land Cluster 1 Net Primary Production
latitude
0
(NPP) into clusters that
Ice or No NPP
-30
reflect the Northern
Sea Cluster 2 and Southern
-60
Hemispheres.
Sea Cluster 1
Introduction to Data Mining, 2nd Edition
-90
09/09/2020 20
-180 -150 -120 -90 -60 -30 0 30
longitude
60 90 120 150 180
Cluster Tan, Steinbach, Karpatne, Kumar
Clustering: Application 1
Market Segmentation:
– Goal: subdivide a market into distinct subsets of
customers where any subset may conceivably be
selected as a market target to be reached with a
distinct marketing mix.
– Approach:
◆ Collect different attributes of customers based on
their geographical and lifestyle related information.
◆ Find clusters of similar customers.
◆ Measure the clustering quality by observing buying
patterns of customers in same cluster vs. those
from different clusters.
Document Clustering:
TID Items
1 Bread, Coke, Milk
Rules Discovered:
2 Beer, Bread {Milk} --> {Coke}
3 Beer, Coke, Diaper, Milk {Diaper, Milk} --> {Beer}
4 Beer, Bread, Diaper, Milk
5 Coke, Diaper, Milk
Market-basket analysis
– Rules are used for sales promotion, shelf
management, and inventory management
Medical Informatics
– Rules are used to find combination of patient
symptoms and test results associated with certain
diseases
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Tan, Steinbach, Karpatne, Kumar
Association Analysis: Applications
Scalability
High Dimensionality
Non-traditional Analysis