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Data mining is the process of analyzing large datasets to extract useful information that can enhance business decision-making and improve revenue or reduce costs. It automates the identification of relationships and patterns in data, making it essential for various industries such as retail, finance, and manufacturing. Data mining utilizes different analytical tools, including statistical methods, machine learning, and neural networks, to facilitate this analysis.

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3 views

Question 2

Data mining is the process of analyzing large datasets to extract useful information that can enhance business decision-making and improve revenue or reduce costs. It automates the identification of relationships and patterns in data, making it essential for various industries such as retail, finance, and manufacturing. Data mining utilizes different analytical tools, including statistical methods, machine learning, and neural networks, to facilitate this analysis.

Uploaded by

boago499
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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DATA MINING

Introduction
The importance of collecting data that reflect your business or scientific activities to achieve competitive advantage is widely recognized now.
Powerful systems for collecting data and managing it in large databases are in place in all large and mid-range companies. However, the
bottleneck of turning this data into our success is the difficulty of extracting knowledge about the system you study from the collected data.

Definition of Data Mining


Data mining is the process of analyzing data from different perspectives and summarizing it into useful information that can be used to increase
revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. Human analysts with no special tools
can no longer make sense of enormous volumes of data that require processing in order to make informed business decisions. Data mining
automates the process of finding relationships and patterns in raw data and delivers results that can be either utilized in an automated decision
support system or assessed by a human analyst.

Uses of Data Mining


With data mining, a retailer could use point-of-sale records of customer purchases to send targeted promotions based on an individual's purchase
history. By mining demographic data from comment or warranty cards, the retailer could develop products and promotions to appeal to specific
customer segments. Data mining is commonly used in Auditing, Finance, Insurance, Telephony and Manufacturing as it can correct problems and
prevents future failures.

How data mining work


Data mining software analyses relationships and patterns in stored transaction data based on open-ended user queries. Several types of analytical
software are available: statistical, machine learning, and neural networks.

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