# Quick Introduction of Data Mining Techniques

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1 Quick Introduction of Data Mining Techniques *Sources partially from Introduction to Data Mining, by P.-N. Tan, M. Steinbach, V. Kumar, Addison-Wesley, 2005.

2 Main Data Mining Techniques Link Analysis Associations Discovery Sequential Pattern Discovery Similar Time Series Discovery Predictive Modeling Classification Clustering Miscellaneous Analysis

3 Association Rules Discovery < Example> Market Basket Analysis Transaction ID Items Purchased 1 butter, bread, milk, beer, diaper 2 bread, milk, beer, egg 3 Coke, Film, bread, butter, milk Example Association Rule If a customer buys diapers, in 60% of cases, he/she also buys beers. This happens in 3% of all transactions. 60%: confidence 3%: support

4 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!

5 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 s 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!

6 Association Rules: AP in Biomedical Domain Medical domain Symptom association: 嘔 吐 腹 瀉 Symptom pattern: ( 頭 痛, 腹 痛 ) 發 燒 Bio domain Gene expression relation: If (Gene A: up-regulated) (Gene B: up-regulated) If (Gene A: up-regulated) {(Gene B: up-regulated); (Gene C: down-regulated)}

7 Sequential Patterns Discovery Basket Analysis Example Customer Transaction Time Purchased Items John 6/21/97 5:30 pm Beer John 6/22/97 10:20 pm Brandy Frank 6/20/97 10:15 am Juice, Coke Frank 6/20/97 11:50 am Beer Frank 6/21/97 9:25 am Wine, Water, CIder Mitchell 6/21/97 3:20 pm Beer, Gin, Cider Mary 6/20/97 2:30 pm Beer Mary 6/21/97 6:17 pm Wine, Cider Mary 6/22/97 5:05 pm Brandy Robin 6/20/97 11:05 pm Brandy

8 Sequential Patterns Discovery(cont.) Basket Analysis Example Customer Customer Sequences John Frank Mitchell Mary Robin (Beer) (Brandy) (Juice, Coke) (Beer) (Wine, Water, Cider) (Beer, Gin, Cider) (Beer) (Wine, Cider) (Brandy) (Brandy)

9 Sequential Patterns (cont.) Basket Analysis Example Mining Result Sequential Patterns with Support >= 40% (Beer) (Brandy) (Beer) (Wine, Cider) Supporting Customers John, Mary Frank, Mary

10 Sequential Pattern Discovery: Definition Given 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 discovering patterns. Event occurrences in the patterns are governed by timing constraints. (A B) (C) (D E) <= xg >ng <= ws <= ms

11 Sequential Pattern Discovery: Examples 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)

12 Sequential Patterns: AP in Biomedical Domain Medical domain Symptom sequence: 嘔 吐 -> 腹 瀉 Symptom sequence: 腹 痛 -> 關 節 酸 痛 -> 發 燒 Bio domain (Gene A: up-regulated) -> (Gene B: up-regulated) and (Gene C: down-regulated) after time t

13 Classification Techniques Goal: Build a model to classify objects into classes based on their attributes Interpretation and Prediction Popular techniques Decision Tree Neural Networks Support Vector Machine (SVM) Classify-By-Associations (CBA) Classify-By-Sequence (CBS) etc.

14 Examples of Classification Task Predicting tumor cells as benign or malignant (eg: KDD-Cup 08) Classifying i credit card transactions ti as legitimate or fraudulent Classifying secondary structures of protein as alpha-helix, beta-sheet, or random coil C t i i t i fi Categorizing news stories as finance, weather, entertainment, sports, etc

15 Classification Techniques: Example Using Decision Trees as example Example data

16 Example of Classification (cont.) 1 Decision Tree D1 D2 Income =High D1 Income =Low D2

17 Example of Classification (cont.) 1 2 D1a D1b D2 Married= Yes D1a Good Decision Tree Income =High D1 N D1b poor Income =Low D2 poor

18 Example of Classification (cont.) Prediction Name:Susan Debt:Low Income:High Married?:Yes,then Risk? Decision Tree Income =High Income =Low So Risk is Good! Married =Yes D1a Good D1 Married =No D1b poor D2 poor

19 Classification: Examples Most customers who placed an online order in /company/product2, were in the age group and lived in Southern Taiwan In the past month, most intranet users who queried on product1 are female, aged in 30-35, 35 in sales dept. Medical domain If ( 女 性 ) & ( 頭 痛, 腹 痛, 發 燒 ) -> disease X1 (conf:c1) If ( 腹 痛 -> 關 節 酸 痛 -> 發 燒 ) -> disease X2 (conf: c2)

20 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 companyinteraction 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

21 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 t fraud by observing credit card transactions on an account.

22 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

23 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) 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 t objects that t are difficult to find! From [Fayyad, et.al.] Advances in Knowledge Discovery and Data Mining, 1996

24 Classifying Galaxies Courtesy: Early Class: Stages of Formation Intermediate Attributes: Image features, Characteristics of light waves received, etc. Late Data Size: 72 million stars, 20 million galaxies Object Catalog: 9 GB Image Database: 150 GB

25 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.

26 Illustrating Clustering Euclidean Distance Based Clustering in 3-D space. Intracluster distances are minimized Intercluster distances are maximized

27 Example of Clustering Customer Profile Name Age Backgroud Career Income John 50 bachelor public 80,000 Tom 25 master service 90,000 Mary 30 bachelor agriculture 60,000 Paul 48 master culture 55,000

28 Example of Clustering (cont.) outlier 100 cluster 1 cluster 2 A g e cluster 3 Income \$150,000

29 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.

30 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.

31 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 Foreign National Metro Sports Entertainment

32 Clustering of S&P 500 Stock Data Observe Stock Movements every day. Clustering gp 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. 3 4 Discovered Clusters Industry Group Applied-Matl-DOW N,Bay-Network-Down,3-COM-DOWN, 1 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, Natl-Semiconduct-DOWN,Oracl-DOWN,SGI-DOW N, Sun-DOW N Apple-Comp-DOWN,Autodesk-DOWN,DEC-DOWN, ADV-Micro-Device-DOWN,Andrew-Corp-DOWN, Device DOWN Andrew DOWN 2 Co mputer-assoc-down,circuit-city-down, Co mpaq-down, EM C-Corp-DOWN, Gen-Inst-DOWN, Motorola-DOWN,Microsoft-DOWN,Scientific-Atl-DOWN Fannie-Mae-DOWN,Fed-Ho me-loan-dow N, MBNA-Corp-DOWN,Morgan-Stanley-DOWN 3 Morgan-Stanley-DOWN Financial-DOWN Baker-Hughes-UP,Dresser-Inds-UP,Halliburton-HLD-UP, Louisiana-Land-UP,Phillips-Petro-UP,Unocal-UP, Oil-UP Schlu mberger-up Technology1-DOWN Technology2-DOWN

33 Deviation/Anomaly Detection Detect significant deviations from normal behavior Applications: Credit Card Fraud Detection Network Intrusion Detection ti Typical network traffic at University level may reach over 100 million connections per day

34 Challenges of Data Mining Scalability High Dimensionality Data Quality Data Distribution (eg, skewed distribution) Complex and Heterogeneous Data (eg, biomedical data, multimedia data, etc) Privacy Preservation New application-based requirements: (e.g.) Stream Data

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