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DataMining and Warehousing - chapter1

Data mining is the process of discovering patterns and insights from large datasets using techniques from statistics, machine learning, and artificial intelligence. Key processes include data cleaning, pattern discovery, prediction, and evaluation, with applications across various fields such as healthcare, finance, and retail. The document also outlines the components of data mining systems, including data source, preprocessing, mining engine, evaluation, and user interface layers.

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Bacha Tariku
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0 views23 pages

DataMining and Warehousing - chapter1

Data mining is the process of discovering patterns and insights from large datasets using techniques from statistics, machine learning, and artificial intelligence. Key processes include data cleaning, pattern discovery, prediction, and evaluation, with applications across various fields such as healthcare, finance, and retail. The document also outlines the components of data mining systems, including data source, preprocessing, mining engine, evaluation, and user interface layers.

Uploaded by

Bacha Tariku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 1

Overview
Brief description
of Data Mining

• Data mining is the process of discovering patterns, correlations,


trends, and useful knowledge from large sets of data

• It combines techniques from statistics, machine learning,


database systems, and artificial intelligence to uncover hidden
insights from vast datasets

• The ultimate goal is to extract valuable information that can be


used for decision-making, prediction, and optimization across
various fields.
Data Cleaning: Data
Identifying and Transformation:
handling missing, Structuring data
noisy, or into a suitable
inconsistent data. format for analysis.

Key
processes Prediction: Using
discovered patterns
to make future
Pattern Discovery:
Identifying patterns,
associations, or
in Data predictions. trends in the data.

Mining
Evaluation:
Assessing the
quality and
relevance of the
discovered patterns.
Data
Mining
Architectu
re
Market Basket Analysis

Fraud Detection
Use cases
of Data Customer Segmentation
Mining
Predictive Maintenance

Network Intrusion
Detection
Descriptive data mining: involves summarizing
and describing the characteristics of a data set.

Types of Predictive data mining: involves using data to


build models that can make predictions or
Data forecasts about future events or outcomes.

Mining
Prescriptive data mining: involves using data
and models to make recommendations or
suggestions about actions or decisions. This type
of data mining is often used to optimize processes,
allocate resources, or make other decisions that
can help organizations achieve their goals.
Data Mining vs Statistics
• Statistics is a field of mathematics that focuses on data collection,
analysis, interpretation, and presentation using established
theories and mathematical models.

• Data Mining is a process in computer science and artificial


intelligence that involves automated discovery of patterns,
relationships, and insights from large datasets, often using
machine learning and algorithms.

• Both data mining and statistics involve analyzing data to find


patterns, trends, and relationships. However, they differ in
approach, purpose and methodology,
Data Mining vs Statistics
Aspect Statistics Data Mining

Approach Hypothesis-driven Data-driven

Data Size Works best with small to medium Works well with very large
datasets datasets
Process Starts with a hypothesis, then tests Finds patterns automatically
it using data without prior hypotheses
Techniques Regression, hypothesis testing, Clustering, classification,
sampling neural networks

Tools R, SPSS, SAS Python, Weka, Apache Spark,


SQL
When to use...
Situation Stat DM
Yes No
You have a hypothesis and want to test it.
You need to analyze a small, structured dataset. Yes No

You want to explore large datasets for hidden patterns. No Yes

You need to generate human-readable results. Yes No

You are working with complex, high-volume data. No Yes

You need predictions, not just explanations. No Yes


Challenges in data
mining
Data Quality

Data Privacy and Security

Data Complexity

Interpretability

Scalability
Ethical Concerns about Data
Mining
Applications of data mining: Healthcare and
Medicine

Disease Prediction Hospital Resource Drug Discovery and


and Diagnosis Optimization Development
Applications of data mining: Finance
and Banking

Risk
Fraud Management Stock Market
Detection and Credit Prediction
Scoring
Applications of data mining: Retail and E-commerce

Customer Behavior Analysis and


Personalization
Market Basket Analysis

Demand Forecasting and Inventory


Management
Applications of data mining: Manufacturing and
Industry

Predictive Maintenance

Quality Control and Defect


Detection
Supply Chain Optimization
Applications of data mining: Education

Student Performance
Prediction
Adaptive Learning Systems
Exam Cheating Detection
Applications of data mining: Social Media and
Entertainment

Sentiment Analysis

Recommendation Systems

Fake News and Misinformation


Detection
Components/layers of data mining
systems
1. Data Source Layer (Data Collection & Storage)
• This is the foundation of any data mining system.
• It consists of various data sources such as:
 Databases (MySQL, PostgreSQL, MongoDB)
 Data Warehouses (Amazon Redshift, Snowflake)
 Flat Files (CSV, Excel, Text files)
 Big Data Repositories (Hadoop, Spark)
Components/layers of data mining
systems
2. Data Preprocessing Layer (Data Cleaning &
Transformation)
Before performing data mining, raw data must be
prepared to ensure accuracy and efficiency. This
layer consists of:
 Data Cleaning: Removing noise, handling missing values, and
correcting inconsistencies.
 Data Integration: Combining data from multiple sources into a unified
format.
 Data Transformation: Normalizing or aggregating data for better
analysis.
 Data Reduction: Summarizing data to improve efficiency (e.g.,
dimensionality reduction using PCA).
Components/layers of data mining
systems
3. Data Mining Engine (Pattern Extraction & Processing)
This is the core component where actual data mining happens. It
consists of various algorithms and techniques used for pattern
recognition.
Functions of the Data Mining Engine:
o Classification & Prediction: Assigns data to categories (e.g., fraud
detection).
o Clustering: Groups similar data points (e.g., customer segmentation).
o Association Rule Mining: Identifies relationships between items (e.g.,
“Customers who buy phones often buy earphones”).
o Anomaly Detection: Identifies unusual patterns (e.g., detecting cyber
threats).
o Regression Analysis: Predicts numerical values (e.g., forecasting sales
revenue).
Components/layers of data mining
systems
4. Pattern Evaluation & Knowledge Representation
Layer
o This layer ensures that only useful, valid, and interesting
patterns are retained for decision-making.
o Pattern Validation: Determines whether a discovered
pattern is statistically significant.
o Interestingness Measures: Filters out unimportant trends.
o Visualization Tools: Displays patterns in user-friendly
formats like charts, graphs, and dashboards.
Components/layers of data mining
systems
5. User Interface Layer (Decision Making &
Interaction)
• The final layer allows users to interact with the system
and interpret results.
• It includes dashboards, query interfaces, and
reporting tools.
Common Technologies Used:
o BI Tools (Power BI, Tableau, QlikView)
o Statistical Software (SAS, R, SPSS)
o Machine Learning Libraries (Scikit-learn, TensorFlow)
Classification

Clustering

Data
mining Regression

functionalit Association Rule Learning

ies Anomaly Detection

Time Series Analysis


Are All Patterns Important?

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