Data Mining

Question 1

what is the definition of data mining?

Answer 1

the process of discovering new non-trivial potentially useful patterns from large data sets

Question 2

what is the goal of data mining?

Answer 2

the discovery of new patterns and relationships from data

transforming data into knowledge

Question 3

why do you need data visualization

Answer 3

its difficult to see patterns in just a table of numbers

Question 4

What are the storage catapity trends effects of data

Answer 4

decreasing costs for storage capacity means the amt of data availiable is massive. need to find the relationships within this mountain of data to improve a business

Question 5

What are some sources of data

Answer 5

internal systems, external systems, data from social networking and user generate3d data, transactional data from company ops

Question 6

What does a data warehouse do?

Answer 6

aggregates data from all other databases

Question 7

What are some problems with Operational Data

Answer 7

some data isnt suitable for sophistocated data mining, values missing or inconsistent across diff records, data too corse(broad) or too fine (detailed), too much data!

Question 8

What is the curse of dimensionality and how do you solve it?

Answer 8

it is the curswe of being too overwhelmed by the massive amount of data with lots of diff info (too many rows!) cure this by only paying attention to a couple of things at a time. RESTRICTING data to display in an Operational Data Dashboard of a Score Card

Question 9

What are business intelligence systems and what do they do

Answer 9

use data created by other systems and provide reporting and analysis for decision making. Pulling data from across the business is key

Question 10

What is the value of BI systems

Answer 10

help to analyze the data, look for patterns, use patterns to make business decisions, share this info with bus partners, manage inventory, designing mktg and ad strategies

Question 11

What are the 4 diff types of BI systems and what are their defining characteristics

Answer 11

1) reporting system (gets data organized to be viewed)
2) Data Mining Systems (use of Statistics to find patterns and relationships
3) Knowledge Management Systems (forums to share knowledge ie Piazza)
4) Expert Systems (turn human knowledge into if/then decisions to make recommendations)

Question 12

Details on REporting Systems

Answer 12

integrate data from multiple sources, sort/group/sum/avg/compare, format into reports, GIVE THE RIGHT INFO TO THE RIGHT USER AT THE RIGHT TIME

Question 13

What are data marts used for

Answer 13

they answer one business problem

Question 14

What are data cubes used for

Answer 14

they aggregate and summarize data along multiple vectors(location, time, product) to make for faster querying esp in drill down queries

Question 15

What does ETL stand for and mean

Answer 15

stands for Extract, Transform, Load. THis is the proces that reporting systems do everynight

Question 16

Flow of data in Reporting system

Answer 16

(Legacy, Operational, Transactional, Application, WEbservices systems)->ETL->(Data WARehouse, Cube, Mart)

Question 17

Details on Data Mining Systems

Answer 17

Process data using statistical techniques (regression and decision tree analysis) also look for patterns and relationships to predict outcomes (Market Basket analysis[what ppl buy together], Predict donations as to hit target audience)

Question 18

Details on Knowledge Management Systems

Answer 18

Create value from intellectual capital, collect and share human knowledge, foster innovation, increase organizational responsiveness (Piazza like)

Question 19

Details on Expert Systems

Answer 19

encapsulate expert knowledge and put that into the new employees by producing if/then rules to improve desicion making in non-experts, example: the longevity game and web MD. These are interactive things that you put info into and get a response back

Question 20

What are some examples of Pattern finding and data mining

Answer 20

ppl with bad credit scores have more wrecks, on thursday nights ppl buy a lot of diapers and beer

Question 21

What is RFM analysis

Answer 21

REcency+Frequency+Money(spent pervisit). its a technique used to evaluate how valuable a customer is. The program divides customers up into 5 groups on each different area and ranks 1->5 with 1 being the most recent/most frequent/biggest spender

Question 22

Who do you want to target with your marketing when looking at RFM analysis

Answer 22

look for somone with good (low numbers) Frequency and Money but with bad (hi) reccecy. You want to get that consistent big spender back in the store

Question 23

What is a loss leader, cross selling and upselling

Answer 23

loss leader is a product oyu are willing to take a loss on b/c you want to sell other goods to that customer, cross selling is that b/c you bought this you would also like this, upselling i smoving customers to a more expensive version,

Question 24

What is the tricky part about pricing?

Answer 24

low pricing might signal low confidence in product, but dont go too crazy

Question 25

Walmart used predictive tech to know what ppl buy when hurricanes are coming in and empowers employees to do what they think is necessary

Answer 25

true that