Recap …

• What is not data mining

• Ex : generation of attendance report (of a course)
from registration cards.
• Student table (std)

• Registration table (reg)

CSE-307-Data Mining 1
 Recap …Introduction
• Query : Find all students registered in a course
• Select std.idno, std.name from std, reg where
std.idno = reg.idno and reg.ccode = “CSE 307”
• Query processing is straight forward, information is
not non-obvious, not so interesting patterns

CSE-307-Data Mining 2
 Recap….Introduction
• What is data mining?
• Extraction of interesting patterns, hidden(not
obvious)information, knowledge discovery in
databases(KDD)
• Ex: Which electives can be offered simultaneously ?
• Which combination/group of electives are opted by
most students?

CSE-307-Data Mining 3
 Examples of DB query and DM
query
• DB query :
• Find all credit card applicants with first name as Sane
• DM query:
• Find all credit applicants who have poor credit risks -
classification
Examples of DB query and DM
query
• DB query:
• Identify customers who purchased more than
Rs.10,000
• DM query:
• Identify customers with similar buying habits
(Clustering)
• DM query:
• Find all items which are frequently purchased
together by customers – ARM
Examples of DB query and DM
query
• So, DB query – factual information – shallow
knowledge
• DM query – more than mere factual information
– hidden knowledge
Recap …What is Data Mining?
• Many Definitions
• Non-trivial extraction of implicit, previously unknown
and potentially useful information from data
• “Data Mining involves the use of sophisticated data
analysis tools to discover previously unknown, valid
patterns and relationships
in large data sets.”
Recap…Origins of Data Mining
• Draws ideas from machine learning/AI, pattern
recognition, statistics, and database systems

Statistics/ Machine Learning/

AI Pattern
Recognition

Data Mining

Database
systems
 Data Mining Tasks
• Predictive tasks: Predict the values of unknown
variable(attribute), based on known values of other
variables.
• Classification : Discrete target variables
• Ex: Play/Not Play on weather conditions
• Regression: continuous target variables
• Ex: Stock Price
• Descriptive tasks : Derive patterns(rules, correlations,
anomalies)
• Clustering : Document clustering.
• Association Analysis: Market- Basket Analysis
• Anomaly Detection : unusual credit card purchases
Data Mining Tasks...
• Classification [Predictive]
• Clustering [Descriptive]
• Association Rule Discovery [Descriptive]
• Sequential Pattern Discovery [Descriptive]
• Regression [Predictive]
• Deviation Detection [Descriptive]
Classification: Definition
• Given a collection of records (training set )
• Each record contains a set of attributes, one of the
attributes is the class.
• Find a model for class attribute as a function of
the values of other attributes.
• Goal: previously unseen records should be
assigned a class as accurately as possible.
• A test set is used to determine the accuracy of the
model. Usually, the given data set is divided into
training and test sets, with training set used to build
the model and test set used to validate it.
 Classification Example

Tid Refund Marital Taxable Refund Marital Taxable

Status Income Cheat Status Income Cheat

1 Yes Single 125K No No Single 75K ?

2 No Married 100K No Yes Married 50K ?

3 No Single 70K No No Married 150K ?

4 Yes Married 120K No Yes Divorced 90K ?

5 No Divorced 95K Yes No Single 40K ?

6 No Married 60K No
10
No Married 80K ? Test
7 Yes Divorced 220K No Set
8 No Single 85K Yes
9 No Married 75K No Learn
Training
Model
10
10 No Single 90K Yes
Set Classifier
 Classification: Application 1
• Direct Marketing
• Goal: Reduce cost of mailing by targeting a set of
consumers likely to buy a new cell-phone product.
• Approach:
• Use the data for a similar product introduced before.
• We know which customers decided to buy and which decided
otherwise. This {buy, don’t buy} decision forms the class
attribute.
• Collect various demographic, lifestyle, and company-
interaction related information about all such customers.
• Type of business, where they stay, how much they earn, etc.
• Use this information as input attributes to learn a classifier
model.

From [Berry & Linoff] Data Mining Techniques, 1997

 Classification: Application 2
• 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.
Classification : Application 3
Classification: Application 4
• Customer Attrition/Churn:
• Goal: To predict whether a customer is likely to be
lost to a competitor.
• Approach:
• Use detailed record of transactions with each of the past and
present customers, to find attributes.
• How often the customer calls, where he calls, what time-
of-the day he calls most, his financial status, marital
status, etc.
• Label the customers as loyal or disloyal.
• Find a model for loyalty.

From [Berry & Linoff] Data Mining Techniques, 1997

Classification
Outlo
Outlo Temp Humidity Windy Play
Temp Humidity Windy Play ok
ok

1 sunny 85 85 FALSE no
1 sunny 81 82 FALSE ?

2 sunny 80 90 TRUE yes

Test Data
3 overcast 83 86 FALSE yes

4 rainy 70 96 FALSE yes

5 rainy 68 80 FALSE no

6 rainy 65 70 TRUE yes

7 overcast 64 65 TRUE no

8 sunny 72 95 FALSE yes

Model
9 sunny 69 70 FALSE yes

10 rainy 75 80 FALSE yes

11 sunny 75 70 TRUE yes

12 overcast 72 90 TRUE yes

13 overcast 81 75 FALSE no
Classification
14 rainy 71 91 TRUE no
Algo
(Learning )
Training Data
19
Clustering Definition
• Given a set of data points, each having a set of
attributes, and a similarity measure among
them, find clusters such that
• Data points in one cluster are more similar to one
another.
• Data points in separate clusters are less similar to
one another.
• Similarity Measures:
• Euclidean Distance if attributes are continuous.
• Other Problem-specific Measures.
 Illustrating Clustering
x Euclidean Distance Based Clustering in 3-D space.

Intracluster distances Intercluster distances

are minimized are maximized
Clustering
• Clustering (v/s Classification)
• Classification : Class Label (supervised learning)
• Clustering : No Class Label (unsupervised learning)
• Clustering Algos automatically group records of
similar nature into a category
• Unknown categories emerge automatically
• Eg. Document clustering
• Based on the freq of occurrence of terms in the
document we can decide if a set of documents are
related
• Web directories : Web Pages are grouped into category
like Arts/Science and even hierarchically.

22
 Association Rule Discovery:
Definition
• Given a set of records each of which contain some
number of items from a given collection;
• Produce dependency rules which will predict
occurrence of an item based on occurrences of other
items.
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
 Association Rule Discovery: Application 1
Marketing and Sales Promotion:
• Let the rule discovered be
{Bagels, … } --> {Potato Chips}
• Potato Chips as consequent => Can be used to determine
what should be done to boost its sales.
• Bagels in the antecedent => Can be used to see which
products would be affected if the store discontinues selling
bagels.
• Bagels in antecedent and Potato chips in consequent =>
Can be used to see what products should be sold with
Bagels to promote sale of Potato chips!
Association Rule Discovery: Application 2

• Supermarket shelf management.

• Goal: To identify items that are bought together by
sufficiently many customers.
• Approach: Process the point-of-sale data collected
with barcode scanners to find dependencies among
items.
• A classic rule --
• If a customer buys diaper and milk, then he is very likely to
buy beer.
 Sequential Pattern Discovery: Definition

• Given is a set of objects, with each object associated with its own timeline of
events, find rules that predict strong sequential dependencies among different
events.

(A B) (C) (D E)

• Rules are formed by first disovering patterns. Event occurrences in the patterns
are governed by timing constraints.
Sequential Pattern Discovery:
Examples
• In point-of-sale transaction sequences,
• Computer Bookstore:
(Intro_To_Visual_C) (C++_Primer) -->
(Perl_for_dummies, Tcl_Tk)
• Athletic Apparel Store:
(Shoes) (Racket, Racketball) --> (Sports_Jacket)
 Regression
• Predict a value of a given continuous valued variable based
on the values of other variables, assuming a linear or
nonlinear model of dependency.
• Greatly studied in statistics, neural network fields.
• Examples:
• Predicting sales amounts of new product based on
advertising expenditure.
• Predicting wind velocities as a function of temperature,
humidity, air pressure, etc.
• Time series prediction of stock market indices.
Deviation/Anomaly Detection
• Detect significant deviations from normal behavior
• Applications:
• Credit Card Fraud Detection

• Network Intrusion
Detection

Typical network traffic at University level may reach over 100 million connections per day
 Data Mining Steps in KDD
Evaluation
& Present Knowledge

Data Mining
Patterns
Selection and
Transformation

Cleaning and
Integration Datawarehouse

Databases

From: Tan, Steinbach, Kumar, “Introduction to Data Mining” 30

 Data Mining Steps in KDD
• Data Cleaning :Remove noise and inconsistent data
• Data Integration :Multiple data source combined
• Data Selection : Relevant data for analysis is retrieved
• Data Transformation : consolidation, aggregations,
summary
• Data Mining : intelligent method to extract interesting
patterns
• Pattern Evaluation : Truly interesting patterns.
• Knowledge Presentation : Visualization (charts),

31
 Challenges of Data Mining (T1 1.2)
• Scalability
• Dimensionality
• Complex and Heterogeneous Data
• Data Quality
• Privacy Preservation
• Streaming Data
Thank You

CSE-307-Data Mining 33