6720 Labs Chapter 2
6720 Labs Chapter 2
1. Assuming that data mining techniques are to be used in the following cases,
identify whether the task required is supervised or unsupervised learning
(textbook reference - 2.1).
a. Deciding whether or not to issue a loan to an applicant based on
demographic and financial data (with reference to a database of similar
data on prior customers).
b. In an online bookstore, making recommendations to customers concerning
additional items to buy based on the buying patterns of prior transactions.
c. Identifying a network data packet as dangerous (e.g., virus, hacker attack)
based on comparison to other packets whose threat status is known.
d. Identifying segments of similar customers.
e. Predicting whether a company will go bankrupt based on comparing its
financial data to those of similar bankrupt and non-bankrupt firms.
f.
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5. The next 2 Questions require the Use of XLMiner Data Mining software and the
UniversalBank.xls dataset . . .
a. Use XLMiners Convert to Dummies utility to convert the categorical
variable Education to binary dummy variables. After the conversion, how
many resulting columns exist for the Education variable? Why is this
conversion performed?
b. Using the newly created dataset (with binary dummy variables), use
XLMiners Partitioning function to perform Standard Partitioning (accept
the default percentages for partitioning). How many records were
assigned to the Training Partition? How many records were assigned to
the Validation Partition? Why was a Test Partition not created?
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