Data Management

CT075-3-2

Introduction to data mining

 Learning Outcomes

By the end of this lecture, YOU should be

able to:
• To Understand the need for mine the data.
• Explain the data mining
• To describe different techniques used in
data mining.
 Why Mine Data? Commercial Viewpoint
• Lots of data is being collected
and warehoused
– Web data, e-commerce
– purchases at department/
grocery stores
– Bank/Credit Card
transactions
• Computers have become cheaper and more powerful
• Competitive Pressure is Strong
– Provide better, customized services for an edge (e.g. in
Customer Relationship Management)
 Why Mine Data? Scientific Viewpoint

• Data collected and stored at

enormous speeds (GB/hour)
– remote sensors on a satellite
– telescopes scanning the skies
– microarrays generating gene
expression data
– scientific simulations
generating terabytes of data
• Traditional techniques infeasible for raw data
• Data mining may help scientists
– in classifying and segmenting data
– in Hypothesis Formation
 Mining Large Data Sets - Motivation
• There is often information “hidden” in the data that is
not readily evident
• Human analysts may take weeks to discover useful
information
• Much of the data is never analyzed at all
4,000,000

3,500,000

3,000,000
The Data Gap
2,500,000

2,000,000

1,500,000
Total new disk (TB) since 1995
1,000,000

500,000
Number of
0
analysts
1995 1996 1997 1998 1999

From: R. Grossman, C. Kamath, V. Kumar, “Data Mining for Scientific and Engineering Applications”
 What is Data Mining?
• Many Definitions
– Non-trivial extraction of implicit, previously
unknown and potentially useful information from
data
– Exploration & analysis, by automatic or
semi-automatic means, of
large quantities of data
in order to discover
meaningful patterns
 What is (not) Data Mining?

 What is not Data  What is Data Mining?

Mining?
– Look up phone – Certain names are more
number in phone prevalent in certain US
directory locations (O’Brien, O’Rurke,
O’Reilly… in Boston area)
– Query a Web – Group together similar
search engine for documents returned by
information about search engine according to
“Amazon” their context (e.g. Amazon
rainforest, Amazon.com,)
 Origins of Data Mining
• Draws ideas from machine learning/AI,
pattern recognition, statistics, and
database systems
• Traditional Techniques Statistics/ Machine Learning/
may be unsuitable due to AI Pattern
Recognition
– Enormity of data
Data Mining
– High dimensionality
of data
– Heterogeneous, Database
systems
distributed nature
of data
 Data Mining Tasks
• Prediction Methods
– Use some variables to predict unknown or
future values of other variables.

• Descriptive Methods
– Find human-interpretable patterns that
describe the data.

From [Fayyad, et.al.] Advances in Knowledge Discovery and Data Mining, 1996
 Data Mining Tasks...

• Classification [Predictive]
• Clustering [Descriptive]
• Association Rule Discovery [Descriptive]
• Sequential Pattern Discovery [Descriptive]
• Regression [Predictive]
• Deviation Detection [Predictive]
 Classification: Definition
• Given a collection of records (training set
)
– Each record contains a set of attributes, one of the
attributes is the class.
• Find a model for class attribute as a
function of the values of other attributes.
• Goal: previously unseen records should
be assigned a class as accurately as
possible.
– A test set is used to determine the accuracy of the
model. Usually, the given data set is divided into
training and test sets, with training set used to build
the model and test set used to validate it.
 Classification Example
l l
ir ca ir ca o us
u
ego ego t in
t t n ss
ca ca co c l a
Tid Refund Marital Taxable Refund Marital Taxable
Status Income Cheat Status Income Cheat

1 Yes Single 125K No No Single 75K ?

2 No Married 100K No Yes Married 50K ?
3 No Single 70K No No Married 150K ?
4 Yes Married 120K No Yes Divorced 90K ?
5 No Divorced 95K Yes No Single 40K ?
6 No Married 60K No No Married 80K ? Test
10

Set
7 Yes Divorced 220K No
8 No Single 85K Yes
9 No Married 75K No
Training
Learn
10
10 No Single 90K Yes
Set Classifier Model
 Classification: Application 1
• Direct Marketing
– Goal: Reduce cost of mailing by targeting a set of
consumers likely to buy a new cell-phone product.
– Approach:
• Use the data for a similar product introduced before.
• We know which customers decided to buy and which
decided otherwise. This {buy, don’t buy} decision forms the
class attribute.
• Collect various demographic, lifestyle, and company-
interaction related information about all such customers.
– Type of business, where they stay, how much they earn, etc.
• Use this information as input attributes to learn a classifier
model.
From [Berry & Linoff] Data Mining Techniques, 1997
 Classification: Application 2
• Fraud Detection
– Goal: Predict fraudulent cases in credit card
transactions.
– Approach:
• Use credit card transactions and the information on its
account-holder as attributes.
– When does a customer buy, what does he buy, how often he
pays on time, etc
• Label past transactions as fraud or fair transactions. This
forms the class attribute.
• Learn a model for the class of the transactions.
• Use this model to detect fraud by observing credit card
transactions on an account.
 Classification: Application 3

• Customer Attrition/Churn:
– Goal: To predict whether a customer is likely
to be lost to a competitor.
– Approach:
• Use detailed record of transactions with each of
the past and present customers, to find attributes.
– How often the customer calls, where he calls, what time-
of-the day he calls most, his financial status, marital
status, etc.
• Label the customers as loyal or disloyal.
• Find a model for loyalty. From [Berry & Linoff] Data Mining Techniques, 1997
 Classification: Application 4

• Sky Survey Cataloging

– Goal: To predict class (star or galaxy) of sky objects,
especially visually faint ones, based on the telescopic
survey images (from Palomar Observatory).
– 3000 images with 23,040 x 23,040 pixels per image.
– Approach:
• Segment the image.
• Measure image attributes (features) - 40 of them per object.
• Model the class based on these features.
• Success Story: Could find 16 new high red-shift quasars,
some of the farthest objects that are difficult to find!

From [Fayyad, et.al.] Advances in Knowledge Discovery and Data Mining, 1996
 Classifying Galaxies Courtesy: http://aps.umn.edu

Early Class: Attributes:

• Stages of Formation • Image features,
• Characteristics of light
waves received, etc.
Intermediate

Late

Data Size:
• 72 million stars, 20 million galaxies
• Object Catalog: 9 GB
• Image Database: 150 GB
 Clustering Definition

• Given a set of data points, each having a

set of attributes, and a similarity measure
among them, find clusters such that
– Data points in one cluster are more similar to
one another.
– Data points in separate clusters are less
similar to one another.
• Similarity Measures:
– Euclidean Distance if attributes are
continuous.
– Other Problem-specific Measures.
 Illustrating Clustering
 Euclidean Distance Based Clustering in 3-D space.

Intracluster
Intraclusterdistances
distances Intercluster
Interclusterdistances
distances
are
areminimized
minimized are
aremaximized
maximized
 Clustering: Application 1
• Market Segmentation:
– Goal: subdivide a market into distinct subsets of
customers where any subset may conceivably be
selected as a market target to be reached with a
distinct marketing mix.
– Approach:
• Collect different attributes of customers based on their
geographical and lifestyle related information.
• Find clusters of similar customers.
• Measure the clustering quality by observing buying patterns
of customers in same cluster vs. those from different
clusters.
 Clustering: Application 2

• Document Clustering:
– Goal: To find groups of documents that are
similar to each other based on the important
terms appearing in them.
– Approach: To identify frequently occurring
terms in each document. Form a similarity
measure based on the frequencies of different
terms. Use it to cluster.
– Gain: Information Retrieval can utilize the
clusters to relate a new document or search
term to clustered documents.
 Illustrating Document Clustering
• Clustering Points: 3204 Articles of Los Angeles Times.
• Similarity Measure: How many words are common in
these documents (after some word filtering).

Category Total Correctly

Articles Placed
Financial 555 364

Foreign 341 260

National 273 36

Metro 943 746

Sports 738 573

Entertainment 354 278

 Clustering of S&P 500 Stock Data
 Observe Stock Movements every day.
 Clustering points: Stock-{UP/DOWN}
 Similarity Measure: Two points are more similar if the events
described by them frequently happen together on the same day.
 We used association rules to quantify a similarity measure.
Discovered Clusters Industry Group

1
Applied-Matl-DOW N,Bay-Net work-Down,3-COM-DOWN,
Cabletron-Sys-DOWN,CISCO-DOWN,HP-DOWN,
DSC-Co mm-DOW N,INTEL-DOWN,LSI-Logic-DOWN,
Micron-Tech-DOWN,Texas-Inst-Down,Tellabs-Inc-Down,
Technology1-DOWN
Natl-Semiconduct-DOWN,Oracl-DOWN,SGI-DOW N,
Sun-DOW N

2
Apple-Co mp-DOW N,Autodesk-DOWN,DEC-DOWN,
ADV-M icro-Device-DOWN,Andrew-Corp-DOWN,
Co mputer-Assoc-DOWN,Circuit-City-DOWN,
Technology2-DOWN
Co mpaq-DOWN, EM C-Corp-DOWN, Gen-Inst-DOWN,
Motorola-DOW N,Microsoft-DOWN,Scientific-Atl-DOWN

3
Fannie-Mae-DOWN,Fed-Ho me-Loan-DOW N,
MBNA-Corp -DOWN,Morgan-Stanley-DOWN Financial-DOWN

4
Baker-Hughes-UP,Dresser-Inds-UP,Halliburton-HLD-UP,
Louisiana-Land-UP,Phillips-Petro-UP,Unocal-UP, Oil-UP
Schlu mberger-UP
 Association Rule Discovery:
Definition
• Given a set of records each of which contain some
number of items from a given collection;
– Produce dependency rules which will predict
occurrence of an item based on occurrences of other
TID
items.
Items
1 Bread, Coke, Milk
Rules
RulesDiscovered:
Discovered:
2 Beer, Bread {Milk}
{Milk}-->
-->{Coke}
{Coke}
3 Beer, Coke, Diaper, Milk {Diaper,
{Diaper,Milk}
Milk}-->
-->{Beer}
{Beer}
4 Beer, Bread, Diaper, Milk
5 Coke, Diaper, Milk
 Association Rule Discovery: Application 1
• Marketing and Sales Promotion:
– Let the rule discovered be
{Bagels, … } --> {Potato Chips}
– Potato Chips as consequent => Can be used to
determine what should be done to boost its sales.
– Bagels in the antecedent => Can be used to see
which products would be affected if the store
discontinues selling bagels.
– Bagels in antecedent and Potato chips in consequent
=> Can be used to see what products should be sold
with Bagels to promote sale of Potato chips!
Association Rule Discovery: Application 2

• Supermarket shelf management.

– Goal: To identify items that are bought
together by sufficiently many customers.
– Approach: Process the point-of-sale data
collected with barcode scanners to find
dependencies among items.
– A classic rule --
• If a customer buys diaper and milk, then he is very
likely to buy beer.
• So, don’t be surprised if you find six-packs stacked
next to diapers!
 Association Rule Discovery: Application 3

• Inventory Management:
– Goal: A consumer appliance repair company wants to
anticipate the nature of repairs on its consumer
products and keep the service vehicles equipped with
right parts to reduce on number of visits to consumer
households.
– Approach: Process the data on tools and parts
required in previous repairs at different consumer
locations and discover the co-occurrence patterns.
 Sequential Pattern Discovery: Definition
• Given is a set of objects, with each object associated with its own timeline of
events, find rules that predict strong sequential dependencies among different
events.

(A B) (C) (D E)
• Rules are formed by first disovering patterns. Event occurrences in the
patterns are governed by timing constraints.

(A B) (C) (D E)
<= xg >ng <= ws

<= ms
Sequential Pattern Discovery: Examples
• In telecommunications alarm logs,
– (Inverter_Problem Excessive_Line_Current)
(Rectifier_Alarm) --> (Fire_Alarm)
• In point-of-sale transaction sequences,
– Computer Bookstore:
(Intro_To_Visual_C) (C++_Primer) -->
(Perl_for_dummies,Tcl_Tk)
– Athletic Apparel Store:
(Shoes) (Racket, Racketball) --> (Sports_Jacket)
 Regression
• Predict a value of a given continuous valued variable
based on the values of other variables, assuming a
linear or nonlinear model of dependency.
• Greatly studied in statistics, neural network fields.
• Examples:
– Predicting sales amounts of new product based on
advetising expenditure.
– Predicting wind velocities as a function of
temperature, humidity, air pressure, etc.
– Time series prediction of stock market indices.
 Deviation/Anomaly Detection
• Detect significant deviations from normal
behavior
• Applications:
– Credit Card Fraud Detection

– Network Intrusion
Detection

Typical network traffic at University level may reach over 100 million
connections per day
 Challenges of Data Mining
• Scalability
• Dimensionality
• Complex and Heterogeneous Data
• Data Quality
• Data Ownership and Distribution
• Privacy Preservation
• Streaming Data