CAP 4770:
Introduction to Data Mining
Fall 2010
Dr. Tao Li
Florida International University
Self-Introduction
• Ph.D. from University of Rochester, 2004
• Associate Professor in the School of Computer
Science at Florida International University
• Research Interest
–
–
–
–
Data Mining
Machine Learning
Information Retrieval
Bioinformatics
• Industry Experience:
– Summer internships at Xerox Research (summer
2001, 2002) and IBM Research (Summer 2003, 2004)
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My Research Projects
• You can find on
http://www.cis.fiu.edu/~taoli
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Student Self-Introduction
• Name
– I will try to remember your names. But if you
have a Long name, please let me know how
should I call you 
• Major and Academic status
• Programming Skills
– Java, C/C++, VB, Matlab, Scripts etc.
• Anything you want us to know
– e.g., I am a spurs fan. 
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Acknowledgements
• Some of the material used in this
course is drawn from other sources:
• Prof. Christopher W. Clifton at Purdue
• Prof. Jiawei Han at UIUC
• Profs. Pang-Ning Tan (Michigan State
University), Michael Steinbach and
Vipin Kumar (University of Minnesota)
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Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
– Curse of Dimensionality
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Course Overview
• Meeting time
– T/Th 2:00pm – 3:15pm
• Office hours:
– Tuesday 5:00pm – 6:00pm or by appointment
• Course Webpage:
– http://www.cs.fiu.edu/~taoli/class/CAP4770F10/index.html
– Lecture Notes and Assignments
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Course Objectives
This is an introductory course for junior/senior
computer science undergraduate students
on the topic of Data Mining. Topics include
data mining applications, data preparation,
data reduction and various data mining
techniques (such as association, clustering,
classification, anomaly detection)
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Assignments and Grading
•
•
•
•
•
•
Reading/Written Assignments
Research Projects
Midterm Exams
Final Project/Presentations
Class attendance is mandatory.
Evaluation will be a subjective process
– Effort is very important component
•
•
•
•
Class Participation: 10%
Quizzes: 10%
Exams: 30%
Assignments: 50%
– Final Project: 15%
– Written Homework: 15%
– Other Projects: 20%
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Text and References
• Jiawei Han and Micheline Kamber. Data
Mining: Concepts and Techniques.
• Ian H. Witten and Eibe Frank. Data
Mining: Practical Machine Learning
Tools and Techniques with Java
Implementations.
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Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
– Curse of Dimensionality
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Why Data Mining?
• Motivation: “Necessity is the Mother of Invention”
• Data explosion problem
– Applications generate huge amounts of data
• WWW, computer systems/programs, biology experiments, Business
transactions, Scientific computation and simulation, Medical and person
data, Surveillance video and pictures, Satellite sensing, Digital media,
– Technologies are available to collect and store data
• Bar codes, scanners, satellites, cameras etc.
• Databases, data warehouses, variety of repositories …
– We are drowning in data, but starving for knowledge!
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What Is Data Mining?
• Data mining (knowledge discovery from data)
– Extraction of interesting (non-trivial, implicit, previously unknown and
potentially useful) patterns or knowledge from huge amount of data
• What is not data mining?
– (Deductive) query processing.
– Expert systems or small ML/statistical programs
• Key Characteristics
– Combination of Theory and Application
– Engineering Process
• Data Pre-processing and Post-processing, Interpretation
– Collection of Functionalities
• Different Tasks and Algorithms
– Interdisciplinary Field
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Real Example from NBA
• AS (Advanced Scout) software from IBM
Research
– Coach can assess the effectiveness of certain
coaching decisions
• Good/bad player matchups
• Plays that work well against a given team
• Raw Data: Play-by-play information recorded by
teams
– Who is on court
– Who took a shot, the type of shot, the outcome, any
rebounds
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AS Knowledge Discovery
• Text Description
– When Price was Point-Guard, J. Williams
made 100% of his jump field-goal-attempts.
The total number of such attempts is 4.
• Graph Description
Starks+Houston+
Ward playing
Shooting
Percentage
Overall
0
20
40
60
Reference:
Bhabdari et al. Advanced Scout: Data Mining and Knowledge Discovery in NBA
Data. Data Mining and Knowledge Discovery, 1, 121-125(1997)
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Ads vs. search results
Ads vs. search results
• Search advertising is the revenue model
– Multi-billion-dollar industry
– Advertisers pay for clicks on their ads
• Interesting problems
– What ads to show for a search?
– If I’m an advertiser, which search terms
should I bid on and how much to bid?
Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
– Curse of Dimensionality
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Potential Applications
• Data analysis and decision support
– Market analysis and management
• Target marketing, customer relationship management (CRM), market
basket analysis, cross selling, market segmentation
– Risk analysis and management
• Forecasting, customer retention, improved underwriting, quality control,
competitive analysis
– Fraud detection and detection of unusual patterns (outliers)
• Other Applications
–
–
–
–
Text mining (news group, email, documents) and Web mining
Stream data mining
System and Network Management
Multimedia Applications
• Music, Image, Video
– DNA and bio-data analysis
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Example: Use in retailing
• Goal: Improved business efficiency
– Improve marketing (advertise to the most likely buyers)
– Inventory reduction (stock only needed quantities)
• Information source: Historical business data
– Example: Supermarket sales records
Date/Time/Register
12/6 13:15 2
12/6 13:16 3
Fish
N
Y
Turkey
Y
N
Cranberries
Y
N
Wine
N
Y
...
...
...
– Size ranges from 50k records (research studies) to terabytes
(years of data from chains)
– Data is already being warehoused
• Sample question – what products are generally
purchased together?
• The answers are in the data, if only we could see them
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Other Applications
• Network System management
– Event Mining Research at IBM
• 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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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 (financialratio, 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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Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
– Curse of Dimensionality
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Data Mining: An Engineering
Process
– Data mining: interactive
and iterative process.
Interpretation/
Evaluation
Mining
Algorithms
Knowledge
Preprocessing
Patterns
Selection
Preprocessed
Data
Data
Target
Data
adapted from:
U. Fayyad, et al. (1995), “From Knowledge Discovery to Data
Mining: An Overview,” Advances in Knowledge Discovery and
Data Mining, U. Fayyad et al. (Eds.), AAAI/MIT Press
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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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Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
– Curse of Dimensionality
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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
Warehouse
Databases
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Data Mining: On What Kind
of Data?
•
•
•
•
Relational databases
Data warehouses
Transactional databases
Advanced DB and information repositories
–
–
–
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–
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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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What Can Data Mining Do?
• Cluster
• Classify
– Categorical, Regression
• Semi-supervised
• Summarize
– Summary statistics, Summary rules
• Link Analysis / Model Dependencies
– Association rules
• Sequence analysis
– Time-series analysis, Sequential associations
• Detect Deviations
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Data Mining Tasks
• Prediction Methods
– Use some variables to predict unknown or
future values of other variables.
• Description Methods
– Find human-interpretable patterns that
describe the data.
From [Fayyad, et.al.] Advances in Knowledge Discovery and Data Mining, 1996
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Data Mining Tasks...
•
•
•
•
•
•
Classification [Predictive]
Clustering [Descriptive]
Association Rule Discovery [Descriptive]
Sequential Pattern Discovery [Descriptive]
Regression [Predictive]
Deviation Detection [Predictive]
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Classification Example
Tid Refund Marital
Status
Taxable
Income Cheat
Refund Marital
Status
Taxable
Income Cheat
1
Yes
Single
125K
No
No
Single
75K
?
2
No
Married
100K
No
Yes
Married
50K
?
3
No
Single
70K
No
No
Married
150K
?
4
Yes
Married
120K
No
Yes
Divorced 90K
?
5
No
Divorced 95K
Yes
No
Single
40K
?
6
No
Married
No
No
Married
80K
?
60K
10
7
Yes
Divorced 220K
No
8
No
Single
85K
Yes
9
No
Married
75K
No
10
10
No
Single
90K
Yes
Training
Set
CAP 4770
Learn
Classifier
Test
Set
Model
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Classification: Definition
• Given a collection of records (training set )
– Each record contains a set of attributes, one of the
attributes is the class.
• Find a model for class attribute as a function
of the values of other attributes.
• Goal: previously unseen records should be
assigned a class as accurately as possible.
– A test set is used to determine the accuracy of the model.
Usually, the given data set is divided into training and
test sets, with training set used to build the model and
test set used to validate it.
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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
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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 fraud by observing credit card
transactions on an account.
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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 timeof-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
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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).
– 3000 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 objects that are difficult to find!
From [Fayyad, et.al.] Advances in Knowledge Discovery and Data Mining, 1996
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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.
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Illustrating Clustering
Euclidean Distance Based Clustering in 3-D space.
Intracluster distances
are minimized
Intercluster distances
are maximized
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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.
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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
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term to clustered documents.
Clustering of S&P 500
Stock
Data
 Observe Stock Movements every day.
 Clustering 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.
Discovered Clusters
1
2
3
4
Applied-Matl-DOW N,Bay-Net work-Down,3-COM-DOWN,
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-Co mp-DOW N,Autodesk-DOWN,DEC-DOWN,
ADV-M icro-Device-DOWN,Andrew-Corp-DOWN,
Co mputer-Assoc-DOWN,Circuit-City-DOWN,
Co mpaq-DOWN, EM C-Corp-DOWN, Gen-Inst-DOWN,
Motorola-DOW N,Microsoft-DOWN,Scientific-Atl-DOWN
Fannie-Mae-DOWN,Fed-Ho me-Loan-DOW N,
MBNA-Corp -DOWN,Morgan-Stanley-DOWN
Baker-Hughes-UP,Dresser-Inds-UP,Halliburton-HLD-UP,
Louisiana-Land-UP,Phillips-Petro-UP,Unocal-UP,
Schlu mberger-UP
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Industry Group
Technology1-DOWN
Technology2-DOWN
Financial-DOWN
Oil-UP
47
Association Rule Discovery:
Definition
• Given a set of records each of which contain
some number of items from a given collection;
TID
1
2
3
4
5
– Produce dependency rules which will predict
occurrence of an item based on occurrences of other
Items
items.
Bread, Coke, Milk
Beer, Bread
Beer, Coke, Diaper, Milk
Beer, Bread, Diaper, Milk
Coke, Diaper, Milk
Rules Discovered:
{Milk} --> {Coke}
{Diaper, Milk} --> {Beer}
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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!
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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 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! CAP 4770
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Association Rule Discovery:
Application 3
• Inventory Management:
– Goal: A consumer appliance repair company wants to
anticipate the nature of repairs on its consumer
products and keep the service vehicles equipped with
right parts to reduce on number of visits to consumer
households.
– Approach: Process the data on tools and parts
required in previous repairs at different consumer
locations and discover the co-occurrence patterns.
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Sequential Pattern Discovery:
Definition
• Given is 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 disovering patterns. Event occurrences in
the patterns are governed by timing constraints.
(A B)
<= xg
(C)
(D E)
>ng
<= ws
<= ms
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Sequential Pattern Discovery:
Examples
• In telecommunications alarm logs,
– (Inverter_Problem Excessive_Line_Current)
(Rectifier_Alarm) --> (Fire_Alarm)
• 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)
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Regression
• Predict a value of a given continuous valued
variable based on the values of other variables,
assuming a linear or nonlinear model of
dependency.
• Greatly studied in statistics, neural network fields.
• Examples:
– Predicting sales amounts of new product based on
advetising expenditure.
– Predicting wind velocities as a function of temperature,
humidity, air pressure, etc.
– Time series prediction of stock market indices.
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Deviation/Anomaly Detection
• Detect significant deviations from normal
behavior
• Applications:
– Credit Card Fraud Detection
– Network Intrusion
Detection
Typical network traffic at University level may reach over 100 million connections per day
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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:
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Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
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Multiple Disciplines
Artificial
Intelligence
Machine
Learning
Database
Management
Statistics
Visualization
Algorithms
Data
Mining
Information
Retrieval
Systems
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Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
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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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Multi-Dimensional View of
Data Mining
• Data to be mined
– Relational, data warehouse, transactional, stream, objectoriented/relational, active, spatial, time-series, text, multi-media,
heterogeneous, legacy, WWW
• Knowledge to be mined
– Characterization, discrimination, association, classification,
clustering, trend/deviation, outlier analysis, etc.
– Multiple/integrated functions and mining at multiple levels
• Techniques utilized
– Database-oriented, data warehouse (OLAP), machine learning,
statistics, visualization, etc.
• Applications adapted
– Retail, telecommunication, banking, fraud analysis, bio-data
mining, stock market analysis, Web mining, etc.
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Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
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History of the Data Mining
• Knowledge Discovery in Databases workshops started
‘89
– Now a conference under the auspices of ACM SIGKDD
– IEEE conference series started 2001
• Key founders / technology contributors:
– Usama Fayyad, JPL (then Microsoft, now has his own company,
Digimine)
– Gregory Piatetsky-Shapiro (then GTE, now his own data mining
consulting company, Knowledge Stream Partners)
– Rakesh Agrawal (IBM Research)
The term “data mining” has been around since at least
1983 – as a pejorative term in the statistics community
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Outline
• Course Logistics
• Data Mining Introduction
• Four Key Characteristics
–
–
–
–
Combination of Theory and Application
Engineering Process
Collection of Functionalities
Interdisciplinary field
• How do we categorize data mining systems?
• History of Data Mining
• Research Issues
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Data Mining Complications
• Volume of Data
– Clever algorithms needed for reasonable performance
• Interest measures
– How do we ensure algorithms select “interesting” results?
• “Knowledge Discovery Process” skill required
– How to select tool, prepare data?
• Data Quality
– How do we interpret results in light of low quality data?
• Data Source Heterogeneity
– How do we combine data from multiple sources?
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Research Issues
•
Mining methodology
– Mining different kinds of knowledge from diverse data types, e.g., bio, stream,
Web
– Performance: efficiency, effectiveness, and scalability
– Pattern evaluation: the interestingness problem
– Incorporation of background knowledge
– Handling noise and incomplete data
– Parallel, distributed and incremental mining methods
– Integration of the discovered knowledge with existing one: knowledge fusion
•
User interaction
– Data mining query languages and ad-hoc mining
– Expression and visualization of data mining results
– Interactive mining of knowledge at multiple levels of abstraction
•
Applications and social impacts
– Domain-specific data mining & invisible data mining
– Protection of data security, integrity, and privacy
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