Data Mining

2058 Words9 Pages
Data Mining
Melody McIntosh

Dr. Janet Durgin
Information Systems for Decision Making
December 8, 2013

Introduction Data mining, or knowledge discovery, is the computer-assisted process of digging through and analyzing enormous sets of data and then extracting the meaning of the data. Data mining tools predict behaviors and future trends, allowing businesses to make proactive, knowledge- driven decisions Although data mining is still in its infancy, companies in a wide range of industries – including retail, finance, health care, manufacturing transportation, and aerospace - are already using data mining tools and techniques to take advantage of historical data. By using
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It basically reduces the cost of making mistakes. This type of algorithm allows businesses to test all sorts of situations and scenarios it could take years to test in the real world. Studying customer behavior gives businesses a competitive advantage and allows them to stay ahead of the competition in their market place. Association analysis is useful for discovering interesting relationships hidden in large amounts of data. There are two things to remember when using association analysis with regard to market data: discovering patterns from a large transaction data set can be computationally expensive and some of the discovered patterns are potentially spurious because they may happen simply by chance. Association discovery finds rules about items that appear together in an event such as a purchase transaction. Market-basket analysis is a well-known example of association discovery.
This algorithm is used for recommendation engines. These engines are used to recommend products to customers based on items they have already bought or shown interest in. This provides a benefit to the business by allowing them to effectively stage their products, as well as, knowing which customers to target for specific promotions or new products. Web data mining is the process of extracting structured information from unstructured or semi-structured web data

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