Data Mining:
Concepts and Techniques
— Slides for Textbook —
— Chapter 1 —
©Jiawei Han and Micheline Kamber
December 9, 2021 Data Mining: Concepts and Techniques 1
Chapter 1. Introduction
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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Motivation: “Necessity is the
Mother of Invention”
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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Evolution of Database Technology
(See Fig. 1.1)
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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What Is Data Mining?
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?
(Deductive) query processing.
Expert systems or small ML/statistical programs
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Why Data Mining? — Potential
Applications
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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Market Analysis and Management (1)
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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Market Analysis and Management (2)
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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Corporate Analysis and Risk
Management
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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Fraud Detection and Management (1)
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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Fraud Detection and Management (2)
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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Other Applications
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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Data Mining: A KDD Process
Pattern Evaluation
Data mining: the core of
knowledge discovery
process. Data Mining
Task-relevant Data
Data Selection
Warehouse
Data Cleaning
Data Integration
Databases
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Steps of a KDD Process
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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Data Mining and Business Intelligence
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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Architecture of a Typical Data
Mining System
Graphical user interface
Pattern evaluation
Data mining engine
Knowledge-base
Database or data
warehouse server
Data cleaning & data integration Filtering
Data
Databases Warehouse
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Data Mining: On What Kind of
Data?
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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Data Mining Functionalities (1)
Concept description: Characterization and
discrimination
Generalize, summarize, and contrast data
characteristics, e.g., dry vs. wet regions
Association (correlation and causality)
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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Data Mining Functionalities (2)
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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Data Mining Functionalities (3)
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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Are All the “Discovered” Patterns
Interesting?
A data mining system/query may generate thousands of patterns, not
all of them are interesting.
Suggested approach: Human-centered, query-based, focused mining
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, actionability, etc.
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Can We Find All and Only
Interesting Patterns?
Find all the interesting patterns: Completeness
Can a data mining system find all the interesting patterns?
Association vs. classification vs. clustering
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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Data Mining: Confluence of Multiple
Disciplines
Database
Statistics
Technology
Machine
Learning
Data Mining Visualization
Information Other
Science Disciplines
December 9, 2021 Data Mining: Concepts and Techniques 23
Data Mining: Classification
Schemes
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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A Multi-Dimensional View of Data
Mining Classification
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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OLAP Mining: An Integration of Data
Mining and Data Warehousing
Data mining systems, DBMS, Data warehouse
systems coupling
No coupling, loose-coupling, semi-tight-coupling, tight-coupling
On-line analytical mining data
integration of mining and OLAP technologies
Interactive mining multi-level knowledge
Necessity of mining knowledge and patterns at different levels of
abstraction by drilling/rolling, pivoting, slicing/dicing, etc.
Integration of multiple mining functions
Characterized classification, first clustering and then association
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An OLAM Architecture
Mining query Mining result Layer4
User Interface
User GUI API
Layer3
OLAM OLAP
Engine Engine OLAP/OLAM
Data Cube API
Layer2
MDDB
MDDB
Meta
Data
Filtering&Integration Database API Filtering
Layer1
Data cleaning Data
Databases Data
Data integration Warehouse Repository
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Major Issues in Data Mining (1)
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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Major Issues in Data Mining (2)
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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Summary
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
December 9, 2021 Data Mining: Concepts and Techniques 30
A Brief History of Data Mining
Society
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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Where to Find References?
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.
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References
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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Thank you !!!
December 9, 2021 Data Mining: Concepts and Techniques 34
