An Introduction to Data Mining

http://www.thearling.com/text/dmwhite/dmwhite.htm

1. Data mining: the extraction of hidden predictive information from large databases.

2. Data mining is ready for application in the business community because it is supported by three technologies that are now sufficiently mature:

- Massive data collection

- Powerful multiprocessor computers

- Data mining algorithms.

3. Evolutionary step & Business question

Data collection(1960s): "What was my total revenue in the last five years?"

Data Access(1980s): "What were unit sales in New England last March?"

Data Warehousing & Decision Support(1990s): "What were unit sales in New England last March? Drill down to Boston."

Data Mining(Emerging today): "What's likely to happen to Boston unit sales next month? Why?"

4. The Scope of Data Mining

- Automated prediction of trends and behaviors

- Automated discovery of previously unknown patterns

5. The most commonly used techniques in data mining are:

- Artificial neural networks

- Decision trees

- Genetic algorithms

- Nearest neighbor method

- Rule induction