Scribd
Upload
2 views

Data mining Techniques

Uploaded by

amitrajyadmal4
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
2 views

Data mining Techniques

Uploaded by

amitrajyadmal4
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Business Analytics Assignment

Name: Amitraj Yadmal


Roll No. 189
Division: Finance (B)

Data mining Techniques:


When analysing enormous datasets, data mining techniques are essential for revealing
insightful patterns and useful insights. Organisations are increasingly depending on these
strategies to unearth hidden knowledge and make educated decisions as a result of the
exponential rise of data in several industries. We shall examine several fundamental data
mining techniques and their applications in depth in this note, emphasising both their
advantages and drawbacks.
1. Classification: Classification is a data mining technique used to assign predefined
classes or labels to new, unlabelled data based on past observations. It involves
building a predictive model using a labelled dataset and applying it to classify unseen
instances. Classification algorithms such as decision trees, logistic regression, and
support vector machines are commonly used in various domains like customer
segmentation, fraud detection, and sentiment analysis.
Example: Spam Email Classification.
2. Clustering: Clustering is the process of grouping similar data instances together based
on their intrinsic characteristics. It aims to identify natural clusters in the data without
any predefined class labels. Clustering algorithms, such as k-means, hierarchical
clustering, and DBSCAN, help discover patterns and relationships within data.
Clustering finds applications in market segmentation, anomaly detection, and
recommendation systems.
Example: Customer Segmentation.
3. Regression Analysis: Regression analysis focuses on establishing the relationship
between a dependent variable and one or more independent variables. It is used to
predict continuous numerical values. Regression models, such as linear regression,
polynomial regression, and decision trees, help in understanding the impact of
independent variables on the dependent variable. Regression analysis finds
applications in sales forecasting, demand prediction, and financial analysis.
Example: House Price Prediction
4. Association Rule Mining: In huge datasets, association rule mining reveals intriguing
connections or links between the components. In order to represent relationships
between items based on their co-occurrence, it finds frequent item groups and
develops association rules. Market basket analysis frequently uses association rule
mining to better understand consumer behaviour and optimise product placement and
promotions.
Example: Market Basket Analysis
5. Anomaly Detection: Anomaly detection aims to identify unusual or abnormal
instances that deviate significantly from the expected behavior within a dataset. It
helps detect outliers, potential fraud, or anomalous events that require special
attention. Anomaly detection techniques include statistical methods, clustering-based
approaches, and machine learning algorithms. It finds applications in cybersecurity,
fraud detection, and fault diagnosis.
Example: Credit Card Fraud Detection
6. Text Mining: Text mining involves extracting useful information and knowledge from
unstructured text data. Techniques such as natural language processing (NLP),
sentiment analysis, and topic modelling are used to analyze and understand textual
data. Text mining is applied in areas such as social media analysis, customer feedback
analysis, and document categorization.
Example: Sentiment Analysis of Customer Reviews

Data mining techniques are effective tools for knowledge discovery that let businesses glean
important information from huge, complicated databases. Some of the most important
methods utilised in a variety of industries include classification, clustering, association rule
mining, regression analysis, anomaly detection, and text mining. Even though these methods
have a lot of potential, successful and ethical data mining requires resolving issues with data
quality, dimensionality, interpretability, and ethics. In today's data-driven environment, data
mining techniques may unearth useful information and facilitate informed decision-making.

You might also like