Chapter-1

Introduction

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 Introduction
 Data preprocessing
 Mining Frequent Patterns
 Mining Association Rules in Large Databases
 Classification
 Prediction
 Clustering analysis

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 Text Book
Jiawei Han & Micheline Kamber , Elsevier
 Reference Book
Arun Ku. Pujari ,”Data Mining Techniques” , University Press.
 Tutorial sections
http://www.cs.sfu.ca/~han/dmbook

 Other conference presentation slides (.ppt):

http://db.cs.sfu.ca/ or http://www.cs.sfu.ca/~han

 Research papers, DBMiner system, and other related information:

http://db.cs.sfu.ca/ or http://www.cs.sfu.ca/~han

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 Motivation: Why data mining?
 What is data mining?
 Data Mining: On what kind of data?
 Data mining functionality
 Are all the patterns interesting?
 Classification of data mining systems
 Major issues in data mining

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 Data explosion problem

◦ Automated data collection tools and mature database

technology lead to tremendous amounts of data stored in
databases, data warehouses and other information repositories

 We are drowning in data, but starving for knowledge!

 Solution: Data warehousing and data mining

◦ Data warehousing and on-line analytical processing

◦ Extraction of interesting knowledge (rules, regularities,

patterns, constraints) from data in large databases

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 1960s:
◦ Data collection, database creation, IMS and network DBMS
 1970s:
◦ Relational data model, relational DBMS implementation
 1980s:
◦ RDBMS, advanced data models (extended-relational, OO,
deductive, etc.) and application-oriented DBMS (spatial,
scientific, engineering, etc.)
 1990s—2000s:
◦ Data mining and data warehousing, multimedia databases,
and Web databases

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 Data mining (knowledge discovery in
databases):
◦ Extraction of interesting (non-trivial, implicit,
previously unknown and potentially useful)
information or patterns from data in large
databases
 Alternative names and their “inside stories”:
◦ Data mining: a misnomer?
◦ Knowledge discovery(mining) in databases (KDD),
knowledge extraction, data/pattern analysis,
data archeology, data dredging, information
harvesting, business intelligence, etc.
 What is not data mining?
◦ Query processing.
◦ Expert systems or small ML/statistical programs

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 Database analysis and Decision Support
◦ Market analysis and management
 target marketing, customer relation management,
market basket analysis, cross selling, market
segmentation
◦ Risk analysis and management
 Forecasting, customer retention, improved
underwriting, quality control, competitive analysis
◦ Fraud Detection and Management
 Other Applications
◦ Text mining (news group, email, documents) and Web
analysis.
◦ Intelligent query answering

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 Where are the data sources for analysis?
◦ Credit card transactions, loyalty cards, discount coupons,
customer complaint calls, plus (public) lifestyle studies
 Target marketing
◦ Find clusters of “model” customers who share the same
characteristics: interest, income level, spending habits,
etc.
 Determine customer purchasing patterns over time
◦ Conversion of single to a joint bank account: marriage,
etc.
 Cross-market analysis
◦ Associations/co-relations between product sales
◦ Prediction based on the association information

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 Customer profiling
◦ data mining can tell you what types of customers buy what
products (clustering or classification)
 Identifying customer requirements
◦ identifying the best products for different customers
◦ use prediction to find what factors will attract new
customers
 Provides summary information
◦ various multidimensional summary reports
◦ statistical summary information (data central tendency and
variation)

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 Finance planning and asset evaluation
◦ cash flow analysis and prediction
◦ contingent claim analysis to evaluate assets
◦ cross-sectional and time series analysis (financial-ratio,
trend analysis, etc.)
 Resource planning:
◦ summarize and compare the resources and spending
 Competition:
◦ monitor competitors and market directions
◦ group customers into classes and a class-based pricing
procedure
◦ set pricing strategy in a highly competitive market

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 Applications
◦ widely used in health care, retail, credit card services,
telecommunications (phone card fraud), etc.
 Approach
◦ use historical data to build models of fraudulent behavior
and use data mining to help identify similar instances
 Examples
◦ auto insurance: detect a group of people who stage
accidents to collect on insurance
◦ money laundering: detect suspicious money transactions
(US Treasury's Financial Crimes Enforcement Network)
◦ medical insurance: detect professional patients and ring of
doctors and ring of references

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 Detecting inappropriate medical treatment
◦ Australian Health Insurance Commission identifies
that in many cases blanket screening tests were
requested (save Australian $1m/yr).
 Detecting telephone fraud
◦ Telephone call model: destination of the call,
duration, time of day or week. Analyze patterns that
deviate from an expected norm.
◦ British Telecom identified discrete groups of callers
with frequent intra-group calls, especially mobile
phones, and broke a multimillion dollar fraud.
 Retail
◦ Analysts estimate that 38% of retail shrink is due to
dishonest employees.

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 Sports
◦ IBM Advanced Scout analyzed NBA game statistics
(shots blocked, assists, and fouls) to gain competitive
advantage for New York Knicks and Miami Heat
 Astronomy
◦ JPL and the Palomar Observatory discovered 22
quasars with the help of data mining
 Internet Web Surf-Aid
◦ IBM Surf-Aid applies data mining algorithms to Web
access logs for market-related pages to discover
customer preference and behavior pages, analyzing
effectiveness of Web marketing, improving Web site
organization, etc.

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 Pattern Evaluation
◦ Data mining: the core of
knowledge discovery
process. Data Mining

Task-relevant Data

Data Warehouse Selection

Data Cleaning

Data Integration

Databases
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 Learning the application domain:
◦ relevant prior knowledge and goals of application
 Creating a target data set: data selection
 Data cleaning and preprocessing: (may take 60% of effort!)
 Data reduction and transformation:
◦ Find useful features, dimensionality/variable reduction, invariant
representation.
 Choosing functions of data mining
◦ summarization, classification, regression, association, clustering.
 Choosing the mining algorithm(s)
 Data mining: search for patterns of interest
 Pattern evaluation and knowledge presentation
◦ visualization, transformation, removing redundant patterns, etc.
 Use of discovered knowledge

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Increasing potential
to support
business decisions End User
Making
Decisions

Data Presentation Business

Analyst
Visualization Techniques
Data Mining Data
Information Discovery Analyst

Data Exploration
Statistical Analysis, Querying and Reporting

Data Warehouses / Data Marts

OLAP, MDA DBA
Data Sources
Paper, Files, Information Providers, Database Systems, OLTP
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 Graphical user interface

Pattern evaluation
Knowledge
Data mining engine Base

Database or data
warehouse
Data cleaning , integration and selection

Databases World Wide Data Other Info

Web Warehouse Repositories

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Data Mining: Concepts and Techniques
 Relational databases
 Data warehouses
 Transactional databases
 Advanced DB and information repositories
◦ Object-oriented and object-relational databases
◦ Spatial databases
◦ Time-series data and temporal data
◦ Text databases and multimedia databases
◦ Heterogeneous and legacy databases
◦ WWW

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 Concept description: Characterization and
discrimination
◦ Generalize, summarize, and contrast data
characteristics, e.g., dry vs. wet regions
 Association (correlation)
◦ Multi-dimensional vs. single-dimensional
association
◦ age(X, “20..29”) ^ income(X, “20..29K”)  buys(X,
“PC”) [support = 2%, confidence = 60%]
◦ contains(T, “computer”)  contains(x, “software”)
[1%, 75%]

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 Classification and Prediction
◦ Finding models (functions) that describe and distinguish
classes or concepts for future prediction
◦ E.g., classify countries based on climate, or classify cars
based on gas mileage
◦ Presentation: decision-tree, classification rule, neural
network
◦ Prediction: Predict some unknown or missing numerical
values
 Cluster analysis
◦ Class label is unknown: Group data to form new classes,
e.g., cluster houses to find distribution patterns
◦ Clustering based on the principle: maximizing the intra-
class similarity and minimizing the interclass similarity

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 Outlier analysis
◦ Outlier: a data object that does not comply with the general
behavior of the data
◦ It can be considered as noise or exception but is quite useful in
fraud detection, rare events analysis

 Trend and evolution analysis

◦ Trend and deviation: regression analysis
◦ Sequential pattern mining, periodicity analysis
◦ Similarity-based analysis
 Other pattern-directed or statistical analyses

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 A data mining system/query may generate thousands of
patterns, not all of them are interesting.
 Interestingness measures: A pattern is interesting if it is
easily understood by humans, valid on new or test data with
some degree of certainty, potentially useful, novel,or
validates some hypothesis that a user seeks to confirm
 Objective vs. subjective interestingness measures:
◦ Objective: based on statistics and structures of patterns, e.g.,
support, confidence, etc.
◦ Subjective: based on user’s belief in the data, e.g.,
unexpectedness, novelty, action ability, etc.

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 Find all the interesting patterns: Completeness
◦ Can a data mining system find all the interesting patterns?
 Search for only interesting patterns: Optimization
◦ Can a data mining system find only the interesting
patterns?
◦ Approaches
 First general all the patterns and then filter out the
uninteresting ones.
 Generate only the interesting patterns—mining query
optimization

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 Database
Statistics
Technology

Machine
Learning
Data Mining Visualization

Information Other
Science Disciplines
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 General functionality
◦ Descriptive data mining
◦ Predictive data mining
 Different views, different classifications
◦ Kinds of databases to be mined
◦ Kinds of knowledge to be discovered
◦ Kinds of techniques utilized
◦ Kinds of applications adapted

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 Databases to be mined
◦ Relational, transactional, object-oriented, object-
relational, active, spatial, time-series, text, multi-media,
heterogeneous, legacy, WWW, etc.
 Knowledge to be mined
◦ Characterization, discrimination, association, classification,
clustering, trend, deviation and outlier analysis, etc.
◦ Multiple/integrated functions and mining at multiple levels
 Techniques utilized
◦ Database-oriented, data warehouse (OLAP), machine
learning, statistics, visualization, neural network, etc.
 Applications adapted
◦ Retail, telecommunication, banking, fraud analysis, DNA mining,
stock market analysis, Web mining, Weblog analysis, etc.

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 Mining methodology and user interaction
◦ Mining different kinds of knowledge in databases
◦ Interactive mining of knowledge at multiple levels of
abstraction
◦ Incorporation of background knowledge
◦ Data mining query languages and ad-hoc data mining
◦ Expression and visualization of data mining results
◦ Handling noise and incomplete data
◦ Pattern evaluation: the interestingness problem
 Performance and scalability
◦ Efficiency and scalability of data mining algorithms
◦ Parallel, distributed and incremental mining methods

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 Issues relating to the diversity of data types
◦ Handling relational and complex types of data
◦ Mining information from heterogeneous databases and
global information systems (WWW)
 Issues related to applications and social impacts
◦ Application of discovered knowledge
 Domain-specific data mining tools
 Intelligent query answering
 Process control and decision making
◦ Integration of the discovered knowledge with existing
knowledge: A knowledge fusion problem
◦ Protection of data security, integrity, and privacy

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 Data mining: discovering interesting patterns from large
amounts of data
 A natural evolution of database technology, in great demand,
with wide applications
 A KDD process includes data cleaning, data integration, data
selection, transformation, data mining, pattern evaluation, and
knowledge presentation
 Mining can be performed in a variety of information
repositories
 Data mining functionalities: characterization, discrimination,
association, classification, clustering, outlier and trend
analysis, etc.
 Classification of data mining systems
 Major issues in data mining
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 1989 IJCAI Workshop on Knowledge Discovery in Databases
(Piatetsky-Shapiro)
◦ Knowledge Discovery in Databases (G. Piatetsky-Shapiro and W. Frawley,
1991)
 1991-1994 Workshops on Knowledge Discovery in Databases
◦ Advances in Knowledge Discovery and Data Mining (U. Fayyad, G. Piatetsky-
Shapiro, P. Smyth, and R. Uthurusamy, 1996)
 1995-1998 International Conferences on Knowledge Discovery
in Databases and Data Mining (KDD’95-98)
◦ Journal of Data Mining and Knowledge Discovery (1997)
 1998 ACM SIGKDD, SIGKDD’1999-2001 conferences, and
SIGKDD Explorations
 More conferences on data mining
◦ PAKDD, PKDD, SIAM-Data Mining, (IEEE) ICDM, etc.

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 Data mining and KDD (SIGKDD member CDROM):
◦ Conference proceedings: KDD, and others, such as PKDD, PAKDD,
etc.
◦ Journal: Data Mining and Knowledge Discovery
 Database field (SIGMOD member CD ROM):
◦ Conference proceedings: ACM-SIGMOD, ACM-PODS, VLDB, ICDE,
EDBT, DASFAA
◦ Journals: ACM-TODS, J. ACM, IEEE-TKDE, JIIS, etc.
 AI and Machine Learning:
◦ Conference proceedings: Machine learning, AAAI, IJCAI, etc.
◦ Journals: Machine Learning, Artificial Intelligence, etc.
 Statistics:
◦ Conference proceedings: Joint Stat. Meeting, etc.
◦ Journals: Annals of statistics, etc.
 Visualization:
◦ Conference proceedings: CHI, etc.
◦ Journals: IEEE Trans. visualization and computer graphics, etc.
Data Mining: Concepts and
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 U. M. Fayyad, G. Piatetsky-Shapiro, P. Smyth, and R. Uthurusamy. Advances
in Knowledge Discovery and Data Mining. AAAI/MIT Press, 1996.
 J. Han and M. Kamber. Data Mining: Concepts and Techniques. Morgan
Kaufmann, 2000.
 T. Imielinski and H. Mannila. A database perspective on knowledge
discovery. Communications of ACM, 39:58-64, 1996.
 G. Piatetsky-Shapiro, U. Fayyad, and P. Smith. From data mining to
knowledge discovery: An overview. In U.M. Fayyad, et al. (eds.), Advances
in Knowledge Discovery and Data Mining, 1-35. AAAI/MIT Press, 1996.
 G. Piatetsky-Shapiro and W. J. Frawley. Knowledge Discovery in Databases.
AAAI/MIT Press, 1991.

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Techniques 12/5/2019 33
Thank you !!!
Data Mining: Concepts and
Techniques 12/5/2019 34
 Data mining is intended for users who are statistically
inclined. These analysts look for patterns hidden in data,
which they are able to extract using statistical models. Data
miners engage in question formulation based primarily on the
"law of large numbers" to identify potentially useful
relationships between data elements, which can be profitable
to companies.

 Data warehouse users, tend to be data experts who analyze

by business dimensions directly. Data warehousing analysts
are concerned with what kinds of purchases their customers
make, and if the analyst can help the customer by improving
the customer experience.

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