Data Mining:

Concepts and Techniques

Instructor : Dr. Gohar Rehman

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 NCEAC

Accreditation

Purpose

Tasks

Your roles(Preparation, views
)

What if …?

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 Grading

Evaluation tools Marks Remarks

distribution
Quizzes 5 2 quizzes
Assignments 5 2 assignments
Lab/practical 10 As per assignment
work
Semester project 15 Must submit before
terminal exam
Mid term 25 As per academic
calendar
Final term 40 As per academic
calendar
Outline
 Motivation: Why data mining?
 What is data mining?
 Data Mining: On what kind of data?
 Data mining functionality
 Are all the patterns interesting?
 Classification of data mining systems
 Major issues in data mining

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Data explosion
 Why Data Mining?
 The Explosive Growth of Data: from terabytes to petabytes
 Data collection and data availability

Automated data collection tools, database systems, Web,
computerized society
 Major sources of abundant data

Business: Web, e-commerce, transactions, stocks, …

Science: Remote sensing, bioinformatics, scientific
simulation, …

Society and everyone: news, digital cameras,
 We are drowning in data, but starving for knowledge!
 “Necessity is the mother of invention”—Data mining—Automated
analysis of massive data sets

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Data Mining is:
The efficient discovery of
previously unknown,
valid, potentially useful,
understandable patterns
in large datasets
 Evolution of Database
Technology
 1960s:
 Data collection, database creation, IMS and network DBMS
 1970s:
 Relational data model, relational DBMS implementation
 1980s:
 RDBMS, advanced data models (extended-relational, OO, deductive,
etc.)
 Application-oriented DBMS (spatial, scientific, engineering, etc.)
 1990s:
 Data mining, data warehousing, multimedia databases, and Web
databases
 2000s
 Stream data management and mining
 Data mining and its applications
 Web technology (XML, data integration) and global information
systems
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 What Is Data Mining?

 Data mining (knowledge discovery from

data)

Extraction of interesting (non-trivial, implicit,
previously unknown and potentially useful)
patterns or knowledge from huge amount of
data
 Alternative name

Knowledge discovery in databases (KDD)
 Watch out: Is everything “data mining”?

Query processing

Expert systems or statistical programs
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Why Data Mining?—Potential
Applications
 Data analysis and decision support
 Market analysis and management

Target marketing, customer relationship
management (CRM), market basket analysis,
market segmentation
 Risk analysis and management

Forecasting, customer retention, quality
control, competitive analysis
 Fraud detection and detection of unusual
patterns (outliers)
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Why Data Mining?—Potential
Applications
 Other Applications
 Text mining (news group, email, documents)
and Web mining
 Stream data mining
 Bioinformatics and bio-data analysis

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 Market Analysis and
Management
 Where does the data come from?
 Credit card transactions, discount coupons,
customer complaint calls
 Target marketing
 Find clusters of “model” customers who share
the same characteristics: interest, income level,
spending habits, etc.
 Determine customer purchasing patterns over
time

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 Market Analysis and
Management
 Cross-market analysis
 Associations/co-relations between product sales,
& prediction based on such association
 Customer profiling
 What types of customers buy what products
 Customer requirement analysis
 Identifying the best products for different
customers
 Predict what factors will attract new customers

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 Fraud Detection & Mining Unusual
Patterns
 Approaches: Clustering & model construction for frauds,
outlier analysis
 Applications: Health care, retail, credit card service,
telecomm.

Medical insurance

Professional patients, and ring of doctors

Unnecessary or correlated screening tests

Telecommunications:

Phone call model: destination of the call, duration, time
of day or week. Analyze patterns that deviate from an
expected norm

Retail industry

Analysts estimate that 38% of retail shrink is due to
dishonest employees 14
 Other Applications

 Internet Web Surf-Aid

 IBM Surf-Aid applies data mining algorithms to
Web access logs for market-related pages to
discover customer preference and behavior
pages, analyzing effectiveness of Web
marketing, improving Web site organization,
etc.

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 Data Mining: A KDD Process


Data mining—core of Pattern Evaluation
knowledge discovery
process
Data Mining

Task-relevant Data

Data Selection
Warehouse
Data Cleaning

Data Integration

Databases
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 Steps of a KDD Process

 Learning the application domain

 Relevant prior knowledge and goals of application
 Creating a target data set: data selection
 Data cleaning and preprocessing: (may take 60% of effort!)
 Data reduction and transformation
 Find useful features, dimensionality/variable reduction.
 Choosing functions of data mining
 Summarization, classification, regression, association,
clustering.
 Choosing the mining algorithm(s)
 Data mining: search for patterns of interest
 Pattern evaluation and knowledge presentation
 Visualization, transformation, removing redundant patterns, etc.
 Use of discovered knowledge
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Architecture: Typical Data Mining
System

Graphical user interface

Pattern evaluation

Data mining engine

Knowledge-
Database or
data warehouse base
server
Data cleaning & data integration Filtering

Data
Databases Warehouse

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 Data Mining: On What Kinds of
Data?
 Relational database
 Data warehouse
 Transactional database
 Advanced database and information repository
 Spatial and temporal data

 Time-series data

 Stream data

 Multimedia database

 Text databases & WWW

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 Data Mining Functionalities
 Concept description: Characterization and
discrimination
 Generalize, summarize, and contrast data characteristics
 Association (correlation and causality)
 Diaper  Beer [0.5%, 75%]
 Classification and Prediction
 Construct models (functions) that describe and distinguish
classes or concepts for future prediction
 Presentation: decision-tree, classification rule, neural
network

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 Data Mining Functionalities
 Cluster analysis
 Class label is unknown: Group data to form new classes,

e.g., cluster houses to find distribution patterns

 Maximizing intra-class similarity & minimizing interclass

similarity
 Outlier analysis
 Outlier: a data object that does not comply with the

general behavior of the data

 Useful in fraud detection, rare events analysis

 Trend and evolution analysis

 Trend and deviation: regression analysis

 Sequential pattern mining, periodicity analysis

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Are All the “Discovered” Patterns
Interesting?
 Data mining may generate thousands of patterns: Not all of
them are interesting
 Suggested approach: Human-centered, query-based, focused
mining
 Interestingness measures
 A pattern is interesting if it is easily understood by humans, valid
on new or test data with some degree of certainty, potentially
useful, novel, or validates some hypothesis that a user seeks to
confirm
 Objective vs. subjective interestingness measures
 Objective: based on statistics and structures of patterns, e.g.,
support, confidence, etc.
 Subjective: based on user’s belief in the data, e.g.,
unexpectedness, novelty.
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Data Mining: Confluence of Multiple
Disciplines

Database
Statistics
Systems

Machine
Learning
Data Mining Visualization

Algorithm Other
Disciplines

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 Data Mining: Classification
Schemes
 Different views, different classifications
 Kinds of data to be mined
 Kinds of knowledge to be discovered
 Kinds of techniques utilized
 Kinds of applications adapted

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Multi-Dimensional View of Data
Mining
 Data to be mined
 Relational, data warehouse, transactional,
stream, object-oriented/relational, active,
spatial, time-series, text, multi-media,
heterogeneous, WWW
 Knowledge to be mined
 Characterization, discrimination, association,
classification, clustering, trend/deviation, outlier
analysis, etc.
 Multiple/integrated functions and mining at
multiple levels

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Multi-Dimensional View of Data
Mining
 Techniques utilized
 Database-oriented, data warehouse (OLAP),
machine learning, statistics, visualization, etc.
 Applications adapted
 Retail, telecommunication, banking, fraud
analysis, bio-data mining, stock market
analysis, Web mining, etc.

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 Major Issues in Data Mining
 Mining methodology
 Mining different kinds of knowledge from
diverse data types, e.g., bio, stream, Web
 Performance: efficiency, effectiveness, and
scalability
 Pattern evaluation: the interestingness problem
 Incorporation of background knowledge
 Handling noise and incomplete data
 Parallel, distributed and incremental mining
methods
 Integration of the discovered knowledge with
existing one: knowledge fusion 27
 Major Issues in Data Mining
 User interaction
 Data mining query languages and ad-hoc
mining
 Expression and visualization of data mining
results
 Interactive mining of knowledge at multiple
levels of abstraction
 Applications and social impacts
 Domain-specific data mining & invisible data
mining
 Protection of data security, integrity, and
privacy
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 Summary
 Data mining: discovering interesting patterns from large
amounts of data
 A natural evolution of database technology, in great demand,
with wide applications
 A KDD process includes data cleaning, data integration, data
selection, transformation, data mining, pattern evaluation, and
knowledge presentation
 Mining can be performed in a variety of information repositories
 Data mining functionalities: characterization, discrimination,
association, classification, clustering, outlier and trend analysis,
etc.
 Data mining systems and architectures
 Major issues in data mining
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