1 Introduction To Predictive Analytics And Data Mining!! Natasha Balac, Ph.D.! Predictive Analytics Center of Excellence, Director! San Diego Supercomputer Center! University of California, San Diego!
2 PACE Predictive Analytics Center of Excellence Closing the gap between Government, Industry and Academia!
3 PACE: Closing the gap between Government, Industry and Academia! Bridge the Industry and Academia Gap Provide Predictive Analytics Services Data Mining Repository of Very Large Data Sets Inform, Educate and Train Predictive Analysis Center of Excellence Foster Research and Collaboration Develop Standards and Methodology High Performance Scalable Data Mining PACE is a non-profit, public educational organization! o To promote, educate and innovate in the area of Predictive Analytics! o To leverage predictive analytics to improve the education and well being of the global population and economy! o To develop and promote a new, multi-level curriculum to broaden participation in the field of predictive analytics!!!
4 Develop Standards and Methodology! Bridge the Industry and Academia Gap! Provide Predictive Analytics Services! Data Mining Repository of Very Large Data Sets! Inform, Educate and Train! Predictive Analysis! Center of Excellence! Foster Research and Collaboration! Develop Standards and Methodology! High Performance Scalable! Data Mining! CRISP-DM! PMML! Data Mining Standards:! Data Warehouse, Web, API and Grid standards! Benchmarking! NIST Big Data WG!
5 Bridge the Industry and Academia Gap! Provide Predictive Analytics Services! Data Mining Repository of Very Large Data Sets! Inform, Educate and Train! Predictive Analysis! Center of Excellence! Foster Research and Collaboration! Develop Standards and Methodology! High Performance Scalable! Data Mining! A data-intensive supercomputer based on SSD flash memory and virtual shared memory! Emphasizes MEM and IO over FLOPS! Scalable Data Mining! Visualizations!
6 Foster Research and Collaboration! Bridge the Industry and Academia Gap! Provide Predictive Analytics Services! Data Mining Repository of Very Large Data Sets! Inform, Educate and Train! Predictive Analysis! Center of Excellence! Foster Research and Collaboration! Develop Standards and Methodology! High Performance Scalable! Data Mining! Fraud Detection! Modeling user behaviors! Smart Grid Analytics! Solar powered system modeling! Microgrid anomaly detection! Battery Storage Analytics! Sport Analytics! Genomics!!
7 CMS Fraud, Waste and Abuse Detection and Prediction! Descriptive Statistics! Claims summary information! History and trends! Distributions across periods, transactions, etc.! Exploratory Analysis! Profiles of provider transactions! Provider similarity according to profiles! Visual summaries of large amounts of data! Eligibility data link to provider billing! Predictive analytics! Adjustments! Equipment, Service Codes! Long term vs. short term hospital stay! Provider profiles!
8 Using Data Mining to Uncover User Behavior Patterns in Supercomputing! Job scheduling protocol - access to supercomputing resources! Efficiency diminishes under certain conditions leading to numerous users needlessly cancelling their jobs! Discover the essential characteristics that can predict when users are likely to cancel! Job logs from various supercomputing facilities! Attributes found to affect user behavior were number of jobs in queue and average waiting tolerance!
9 Predictive Analytics In Action! Sports Analytics! Manufacturing!
10 UCSD Smart Grid! UCSD Smart Grid sensor network data set! 45MW peak micro grid; daily population of over 54,000 people! Self-generate 92% of its own annual electricity load! Smart Grid data over 100,000 measurements/sec! Sensor and environmental/weather data! Large amount of multivariate and heterogeneous data streaming from complex sensor networks! Predictive Analytics throughout the Microgrid!
11 Predictive Analytics for Discovering Energy Consumption Patterns! The utility and the consumer both benefit from consumption analytics! Forecasting the energy consumption patterns in the UCSD campus microgrid! Different spatial and temporal granularities! Novel Feature Engineering! Machine learning for demand response optimization!
12 Cooperative Anomaly Detection for the Protection of Smart Power Grids! Cooperative approach for the anomaly detection in smart grid cyber-physical systems! The collaborative synchronized supervision of communication networks and physical processes is the key to novel methods for fast detection of unusual and suspicious patterns! Combining Network analysis and machine learning to create accurate prediction models!
13 Distributed Energy Generation! Rapid growth of renewable generation capacity! Photovoltaic (PV) generation on residential and commercial rooftops! Interconnected in the electric distribution system, rather than at the high-voltage transmission level! Population of plug-in hybrids and electric vehicles (EVs) is expected to grow substantially!
14 Sustainable San Diego Partnership Clean Tech San Diego, OSIsoft, SDG&E and UC San Diego Common data infrastructure connects physical assets: electrical, gas, water, waste, buildings, transportation &traffic! Platform to securely transfer high volumes of Big Data from multiple, distributed measurement units! Crowd-sourced Big Data in a cyber-secure, private cloud! Predictive analytics on real-time time-series data! White House Big Data Event: Data to Knowledge to Action Launch Partners Award Predictive Analytics Center of Excellence
15 Big Data! Bridge the Industry and Academia Gap! Provide Predictive Analytics Services! Data Mining Repository of Very Large Data Sets! Inform, Educate and Train! Predictive Analysis! Center of Excellence! Foster Research and Collaboration! Develop Standards and Methodology! High Performance Scalable! Data Mining! Complexities introduced by the large amount of multivariate and heterogeneous data streaming from complex sensor networks! Extremely large, complex sensor networks, enabling a novel feature reduction method that scales well!
17 4 V s of Big Data! IBM, 2012
19 Kmeans Results from 10 million NYTimes articles cluster means shown with coordinates determining fontsize 7 viable clusters found 19
20 Predictive Analytics Services! Bridge the Industry and Academia Gap! Provide Predictive Analytics Services! Data Mining Repository of Very Large Data Sets! Inform, Educate and Train! Predictive Analysis! Center of Excellence! Foster Research and Collaboration! Develop Standards and Methodology! High Performance Scalable! Data Mining! Full-service consulting and development services! Ability specific, on-site and need-based training for industry, governmental and academics! State of the Industry/ Technology seminars! Open forums where software and hardware providers showcase new and upcoming products!
21 Big Data Big Training! Data Scientist! The Hot new gig in town! O Reilly report! Data Scientist: The Sexiest Job of the 21st Century! Harvard Business Review, October 2012! The next sexy job in next 10 years will be statistician Hal Varian, Google Chief Economist! Geek Chic Wall Street Journal new cool kids on campus! The future belongs to the companies and people that turn data into products! The human expertise to capture and analyze big data is both the most expensive and the most constraining factor for most organizations pursuing big data initiatives Thomas Davenport! New curriculum Boot camps, Certificates, Data Science Institute, 14 MAS!
22 Data scientist: The hot new gig in tech! Article in Fortune The unemployment rate in the U.S. continues to be abysmal (9.1% in July), but the tech world has spawned a new kind of highly skilled, nerdy-cool job that companies are scrambling to fill: data scientist McKinsey Global Institute Big data Report! By 2018, the United States alone could face a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analysis of big data to make effective decisions
23 Data Science Job Growth! By 2018 shortage of ,000 predictive analysts and 1.5M managers / analysts in the US
24 Data Miners: Past and Present Traditional approaches have been for DM experts: White-coat PhD statisticians DM tools also fairly expensive Today: approach is designed for those with some Database/Analytics skills DM built into DB, easy to use GUI, Workflows Many jobs available from Statistical analyst to Data Scientist! Data Science: The Art of mathematically sophisticated data engineers delivering insights from data into business decisions and systems!
26 Successful Data Scientist Characteristics! Intellectual curiosity, Intuition! Find needle in a haystack! Ask the right questions value to the business! Communication and engagements! Presentation skills! Let the data speak but tell a story! Story teller drive business value not just data insights! Creativity! Guide further investigation! Business Savvy! Discovering patterns that identify risks and opportunities! Measure!
27 To Ph.D or NOT Ph.D? That is the Question! LinkedIn Poll:!!Do You Need a PhD to Analyze Big Data?!! YES! 301 (12%)!! NO! 2476 votes (87%)!
28 PACE Education Educating the new generation of Data Scientist! Data mining Boot Camps! Boot Camp 1! September 2014! Boot Camp 2! October 2014! On-site Bootcamp training! Tech Talks - 3rd Wednesday! Workshops one day latest and greatest! Hadoop, PMML, R, Data Mining Tools! Institute for Data Science and Engineering!!
29 Technical Session 1! INTRO TO DATA MINING!
30 Necessity is the Mother of Invention! Data explosion! Automated data collection tools and mature database technology lead to tremendous amounts of data stored in databases, data warehouses and other information repositories! n We are drowning in data, but starving for knowledge! (John Naisbitt, 1982)! 30
31 Necessity is the Mother of Invention! n Solution! n Predictive Analytics or Data Mining! n Extraction or mining of interesting knowledge (rules, regularities, patterns, constraints) from data in large databases! n Data -driven discovery and modeling of hidden patterns in large volumes of data! n Extraction of implicit, previously unknown and unexpected, potentially extremely useful information from data! 31
32 Predictive Analytics Top-Down Methodology Bottom-Up Methodology Surface Shallow Corporate Data Hidden Analytical Tools SQL tools for simple queries and reporting Statistical & BI tools for summaries and analysis Data Mining methods for knowledge discovery 32
33 Query Reporting BI Data Mining Extraction of data; detailed and/or summarized Analysis, summaries, Trends Discovery of hidden patterns, information, predicting future trends Information Analysis Insight knowledge and prediction Who purchased the product in the last 2 quarters? What is an average income of the buyers per quarter by district? Which customers are likely to buy a similar product in the future and why? 33
34 DM Enables Predictive Analytics Role of Software Proactive Data mining! Predictive Analysis! Interactive BI! Passive Ad-hoc reporting! Canned reporting! Presentation Exploration Discovery Business Insight
35 What Is Data Mining?! Combination of AI and statistical analysis to discover information that is hidden in the data! associations (e.g. linking purchase of pizza with beer)! sequences (e.g. tying events together: marriage and purchase of furniture)! classifications (e.g. recognizing patterns such as the attributes of employees that are most likely to quit)! forecasting (e.g. predicting buying habits of customers based on past patterns)! 35
36 Data Mining is NOT! Data Warehousing! (Deductive) query processing! SQL/ Reporting! Software Agents! Expert Systems! Online Analytical Processing (OLAP)! Statistical Analysis Tool! Data visualization! BI Business Intelligence! 36
37 Multidisciplinary Field! Database Technology Statistics Machine Learning Data Mining Visualization Artificial Intelligence Other Disciplines 37
38 Data Mining is! Multidisciplinary Field! Database technology! Artificial Intelligence! Machine Learning including Neural Networks! Statistics! Pattern recognition! Knowledge-based systems/acquisition! High-performance computing! Data visualization! Other Disciplines! 38
39 History of Data Mining! 39
40 History! Emerged late 1980s! Flourished 1990s! Roots traced back along three family lines! Classical Statistics! Artificial Intelligence! Machine Learning! 40
41 Statistics! Foundation of most DM technologies! Regression analysis, standard distribution/deviation/ variance, cluster analysis, confidence intervals! Building blocks! Significant role in today s data mining but alone is not powerful enough! 41
43 Machine Learning! Union of statistics and AI! Blends AI heuristics with advanced statistical analysis! Machine Learning let computer programs! learn about data they study - make different decisions based on the quality of studied data! using statistics for fundamental concepts and adding more advanced AI heuristics and algorithms! 43
44 Terminology! Gold Mining! Knowledge mining from databases! Knowledge extraction! Data/pattern analysis! Knowledge Discovery Databases or KDD! Information harvesting! Business intelligence! Predictive Analytics! Data Science! 44
45 TAXONOMY! Predictive Methods! Use some variables to predict some unknown or future values of other variables! Descriptive Methods! Find human interpretable patterns that describe the data! Supervised vs. Unsupervised!!!
46 What does Data Mining Do? Explores Your Data! Finds Patterns! Performs Predictions!
47 What can we do with Data Mining?! Exploratory Data Analysis! Predictive Modeling: Classification and Regression! Descriptive Modeling! Cluster analysis/segmentation! Discovering Patterns and Rules! Association/Dependency rules! Sequential patterns! Temporal sequences! Deviation detection! 47
48 Data Mining Applications! Science: Chemistry, Physics, Medicine, Energy! Biochemical analysis, remote sensors on a satellite, Telescopes star galaxy classification, medical image analysis! Bioscience! Sequence-based analysis, protein structure and function prediction, protein family classification, microarray gene expression! Pharmaceutical, Insurance, Health care, Medicine! Drug development, identify successful medical therapies, claims analysis, fraudulent behavior, medical diagnostic tools, predict office visits! Financial Industry, Banks, Businesses, E-commerce! Stock and investment analysis, identify loyal customers vs. risky customer, predict customer spending, risk management, sales forecasting!! 48
50 Data Mining Applications! Sports and Entertainment! 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! Campaign Management and Database Marketing!! 50
51 Data Mining Tasks! n Concept/Class description: Characterization and discrimination! n Generalize, summarize, and contrast data characteristics, e.g., dry vs. wet regions; normal vs. fraudulent behavior! n Association (correlation and causality)! n Multi-dimensional interactions and associations! age(x, ) ^ income(x, 60-90K ) à buys(x, TV )! Hospital(area code) ^ procedure(x) ->claim (type) ^ claim(cost)! 51
52 Data Mining Tasks! n Classification and Prediction n Finding models (functions) that describe and distinguish classes or concepts for future prediction n Example: classify countries based on climate, or classify cars based on gas mileage, fraud based on claims information, energy usage based on sensor data n Presentation: n If-THEN rules, decision-tree, classification rule, neural network n Prediction: Predict some unknown or missing numerical values 52
53 Cluster analysis! Class label is unknown: Group data to form new classes! Clustering based on the principle: maximizing the intra-class similarity and minimizing the interclass similarity! n Outlier analysis! Data Mining Tasks! n n Data object that does not comply with the general behavior of the data! Mostly considered as noise or exception, but is quite useful in fraud detection, rare events analysis! n Trend and evolution analysis! n n Trend and deviation: regression analysis! Sequential pattern mining, periodicity analysis! 53
54 KDD Process! Database Selection Transformation Data Preparation Training Data Data Mining Model, Patterns Evaluation, Verification 54
55 55 KDD Process Steps! n Learning the application domain: n relevant prior knowledge and goals of application n Creating a target data set: data selection n Data cleaning and preprocessing: (may take 60% of effort!) n Data reduction and transformation: n Find useful features, dimensionality/variable reduction, representation n Choosing functions of data mining n summarization, classification, regression, association, clustering
56 KDD Process Steps (2)! n Choosing functions of data mining n summarization, classification, regression, association, clustering n Choosing the mining algorithm(s) n Data mining: search for patterns of interest n Pattern evaluation and knowledge presentation n visualization, transformation, removing redundant patterns, etc. n Use and integration of discovered knowledge 56
57 CRISP-DM - Cross Industry Standard Process for Data Mining! CRISP-DM Process Model!
58 Learning and Modeling Methods! Decision Tree Induction (C4.5, J48)!!! Regression Tree Induction (CART, MP5)! Multivariate Regression Tree (MARS)!! Clustering (K-means, EM, Cobweb)!!!! Artificial Neural Networks (Backpropagation, Recurrent)! Support Vector Machines (SVM)! Various other models! 58
59 Decision Tree Induction! Method for approximating discrete-valued functions! robust to noisy/missing data! can learn non-linear relationships! inductive bias towards shorter trees!! 59
60 Decision Tree Induction!! Applications:! medical diagnosis ex. heart disease! analysis of complex chemical compounds! classifying equipment malfunction! risk of loan applicants! Boston housing project price prediction! fraud detection!! 60
61 Decision Tree Example!
62 Regression Tree Induction! Why Regression tree?! Ability to:! Predict continuous variable! Model conditional effects! Model uncertainty! 62
63 Regression Trees! Continuous goal variables! Induction by means of an efficient recursive partitioning algorithm! Uses linear regression to select internal nodes! Quinlan,
64 Clustering Basic idea: Group similar things together Unsupervised Learning Useful when no other info is available K-means Partitioning instances into k disjoint clusters Measure of similarity 64
65 Clustering! X X X X 65
66 Kmeans Results from 10 million NYTimes articles cluster means shown with coordinates determining fontsize 7 viable clusters found 66
67 Artificial Neural Networks (ANNs)!! Network of many simple units Main Components Inputs Hidden layers Outputs 67 Adjusting weights of connections Backpropagation
68 Evaluation! Error on the training data vs. performance on future/unseen data! Simple solution! Split data into training and test set! Re-substitution error! error rate obtained from the training data! Three sets! training data, validation data, and test data!
69 Training and Testing! Test set! set of independent instances that have not been used in formation of classifier in any way! Assumption! data contains representative samples of the underlying problem! Example: classifiers built using customer data from two different towns A and B! To estimate performance of classifier from town in completely new town, test it on data from B!
70 Error Estimation Methods! Holdout! ½ training and ½ testing (2/3&1/3)! Repeated Holdout Method! Random sampling repeated holdout! Cross-validation! Partition in K disjoint clusters! Train k-1, test on remaining! Leave-one-out Method! Bootstrap! Sampling with replacement!
71 Data Mining Challenges!! Computationally expensive to investigate all possibilities! Dealing with noise/missing information and errors in data! Mining methodology and user interaction! Mining different kinds of knowledge in databases! Incorporation of background knowledge! Handling noise and incomplete data! Pattern evaluation: the interestingness problem! Expression and visualization of data mining results! 71
72 Data Mining Heuristics and Guide! Choosing appropriate attributes/input representation! Finding the minimal attribute space! Finding adequate evaluation function(s)! Extracting meaningful information! Not overfitting! 72
73 Available Data Mining Tools! COTs:! n IBM Intelligent Miner! n SAS Enterprise Miner! n Oracle ODM! n Microstrategy! n Microsoft DBMiner! n Pentaho! n Matlab! n Teradata! Open Source:! n WEKA! n KNIME! n Orange! n RapidMiner! n NLTK! n R! n Rattle! 73
74 Data mining applications at SDSC DM Suites MathWorks Octave Computational Packages with DM tools Libraries for building tools Others as Requested 74
75 Summary! Discovering interesting patterns from large amounts of data! CRISP-DM Industry standard! Learn from the past! High quality, evidence based decisions! Predict for the future! Prevent future instances of fraud, waste & abuse! React to changing circumstances! Current models, continuous learning!! 75
76 Thank you! 76
77 Mike Gualtieri's blog
78 Questions?! For further information, contact Natasha Balac
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