Information and

Communication
Technology
Luk Yin Shun
Chapter 12 Data Mining and Its Applications
12.1 Data Mining
Data Query Data Mining
The output is the query result, which is a subset of The output is new knowledge, which cannot be
the current database(s) found directly in the current database(s)
The output is precise The output is fuzzy

Step Description
Selection Selecting an appropriate subset of data to perform
knowledge discovery
Pre-processing A data cleaning step in which inappropriate data
item are removed
Transformation Transforming the data into a more usable format,
including reducing the effective number of data
items
Data Mining Using some appropriate data mining techniques to
extract patterns form the data
Interpretation Interpreting the extracted patterns, in order to
f=transform them into knowledge, which in turn
facilities

12.2 Data Mining Techniques

Predictive Techniques
Classification: a kind of supervised learning, which is a machine learning technique for deriving a model
or function from data.
 Regression: a techniques for learning a function which maps each data item to a real-valued variable,
instead of a class, for prediction
Time Series Analysis: plots raw data against time, and use the graph to predict values of the trend of
future values

Descriptive Techniques
Clustering:
o unsupervised learning: a machine learning technique without the manual class labelling of inputs
o No predefined classes
Association rules:
o refers to finding frequent patterns, associations or correlations among data sets
o helps discover relations between variables in a data warehouse
Summarization
o the technique that investigates a collection of patterns from raw data and generate a compact description
for them
Sequence Discovery
o looks up all the frequent patterns reaching a specific supporting threshold

Application Examples:

Selling financial product

Estimation of insurance cost

Prediction of stocks trends