Machine Learning, Data Mining, and Knowledge Discovery: An Introduction Prof. Ahmed Sameh PSU.

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Presentation transcript:

Machine Learning, Data Mining, and Knowledge Discovery: An Introduction Prof. Ahmed Sameh PSU

2 Course Outline  Machine Learning  input, representation, decision trees  Weka  machine learning workbench  Data Mining  associations, deviation detection, clustering, visualization  Case Studies  targeted marketing, genomic microarrays  Data Mining, Privacy and Security  Final Project: Microarray Data Mining Competition

3 Lesson Outline  Introduction: Data Flood  Data Mining Application Examples  Data Mining & Knowledge Discovery  Data Mining Tasks

4 Trends leading to Data Flood  More data is generated:  Bank, telecom, other business transactions...  Scientific data: astronomy, biology, etc  Web, text, and e-commerce

5 Big Data Examples  Europe's Very Long Baseline Interferometry (VLBI) has 16 telescopes, each of which produces 1 Gigabit/second of astronomical data over a 25-day observation session  storage and analysis a big problem  AT&T handles billions of calls per day  so much data, it cannot be all stored -- analysis has to be done “on the fly”, on streaming data

6 Largest databases in 2003  Commercial databases:  Winter Corp Survey: France Telecom has largest decision-support DB, ~30TB; AT&T ~ 26 TB  Web  Alexa internet archive: 7 years of data, 500 TB  Google searches 4+ Billion pages, many hundreds TB  IBM WebFountain, 160 TB (2003)  Internet Archive ( 300 TBwww.archive.org

7 From terabytes to exabytes to …  UC Berkeley 2003 estimate: 5 exabytes (5 million terabytes) of new data was created in  US produces ~40% of new stored data worldwide  2006 estimate: 161 exabytes (IDC study)   2010 projection: 988 exabytes

8 Largest Databases in 2005 Winter Corp Commercial Database Survey: 1.Max Planck Inst. for Meteorology, 222 TB 2.Yahoo ~ 100 TB (Largest Data Warehouse) 3.AT&T ~ 94 TB

9 Data Growth In 2 years, the size of the largest database TRIPLED!

10 Data Growth Rate  Twice as much information was created in 2002 as in 1999 (~30% growth rate)  Other growth rate estimates even higher  Very little data will ever be looked at by a human Knowledge Discovery is NEEDED to make sense and use of data.

11 Lesson Outline  Introduction: Data Flood  Data Mining Application Examples  Data Mining & Knowledge Discovery  Data Mining Tasks

12 Machine Learning / Data Mining Application areas  Science  astronomy, bioinformatics, drug discovery, …  Business  CRM (Customer Relationship management), fraud detection, e- commerce, manufacturing, sports/entertainment, telecom, targeted marketing, health care, …  Web:  search engines, advertising, web and text mining, …  Government  surveillance (?|), crime detection, profiling tax cheaters, …

13 Application Areas What do you think are some of the most important and widespread business applications of Data Mining?

14 Data Mining for Customer Modeling  Customer Tasks:  attrition prediction  targeted marketing:  cross-sell, customer acquisition  credit-risk  fraud detection  Industries  banking, telecom, retail sales, …

15 Customer Attrition: Case Study  Situation: Attrition rate at for mobile phone customers is around 25-30% a year!  With this in mind, what is our task?  Assume we have customer information for the past N months.

16 Customer Attrition: Case Study Task:  Predict who is likely to attrite next month.  Estimate customer value and what is the cost-effective offer to be made to this customer.

17 Customer Attrition Results  Verizon Wireless built a customer data warehouse  Identified potential attriters  Developed multiple, regional models  Targeted customers with high propensity to accept the offer  Reduced attrition rate from over 2%/month to under 1.5%/month (huge impact, with >30 M subscribers) (Reported in 2003)

18 Assessing Credit Risk: Case Study  Situation: Person applies for a loan  Task: Should a bank approve the loan?  Note: People who have the best credit don’t need the loans, and people with worst credit are not likely to repay. Bank’s best customers are in the middle

19 Credit Risk - Results  Banks develop credit models using variety of machine learning methods.  Mortgage and credit card proliferation are the results of being able to successfully predict if a person is likely to default on a loan  Widely deployed in many countries

20 e-commerce  A person buys a book (product) at Amazon.com What is the task?

21 Successful e-commerce – Case Study  Task: Recommend other books (products) this person is likely to buy  Amazon does clustering based on books bought:  customers who bought “Advances in Knowledge Discovery and Data Mining”, also bought “Data Mining: Practical Machine Learning Tools and Techniques with Java Implementations”  Recommendation program is quite successful

22 Unsuccessful e-commerce case study (KDD-Cup 2000)  Data: clickstream and purchase data from Gazelle.com, legwear and legcare e-tailer  Q: Characterize visitors who spend more than $12 on an average order at the site  Dataset of 3,465 purchases, 1,831 customers  Very interesting analysis by Cup participants  thousands of hours - $X,000,000 (Millions) of consulting  Total sales -- $Y,000  Obituary: Gazelle.com out of business, Aug 2000

23 Genomic Microarrays – Case Study Given microarray data for a number of samples (patients), can we  Accurately diagnose the disease?  Predict outcome for given treatment?  Recommend best treatment?

24 Example: ALL/AML data  38 training cases, 34 test, ~ 7,000 genes  2 Classes: Acute Lymphoblastic Leukemia (ALL) vs Acute Myeloid Leukemia (AML)  Use train data to build diagnostic model ALLAML Results on test data: 33/34 correct, 1 error may be mislabeled

25 Security and Fraud Detection - Case Study  Credit Card Fraud Detection  Detection of Money laundering  FAIS (US Treasury)  Securities Fraud  NASDAQ KDD system  Phone fraud  AT&T, Bell Atlantic, British Telecom/MCI  Bio-terrorism detection at Salt Lake Olympics 2002

26 Data Mining and Privacy  in 2006, NSA (National Security Agency) was reported to be mining years of call info, to identify terrorism networks  Social network analysis has a potential to find networks  Invasion of privacy – do you mind if your call information is in a gov database?  What if NSA program finds one real suspect for 1,000 false leads ? 1,000,000 false leads?

27 Problems Suitable for Data-Mining  require knowledge-based decisions  have a changing environment  have sub-optimal current methods  have accessible, sufficient, and relevant data  provides high payoff for the right decisions! Privacy considerations important if personal data is involved

28 Lesson Outline  Introduction: Data Flood  Data Mining Application Examples  Data Mining & Knowledge Discovery  Data Mining Tasks

29 Knowledge Discovery Definition Knowledge Discovery in Data is the non-trivial process of identifying  valid  novel  potentially useful  and ultimately understandable patterns in data. from Advances in Knowledge Discovery and Data Mining, Fayyad, Piatetsky-Shapiro, Smyth, and Uthurusamy, (Chapter 1), AAAI/MIT Press 1996

30 Related Fields Statistics Machine Learning Databases Visualization Data Mining and Knowledge Discovery

31 Statistics, Machine Learning and Data Mining  Statistics:  more theory-based  more focused on testing hypotheses  Machine learning  more heuristic  focused on improving performance of a learning agent  also looks at real-time learning and robotics – areas not part of data mining  Data Mining and Knowledge Discovery  integrates theory and heuristics  focus on the entire process of knowledge discovery, including data cleaning, learning, and integration and visualization of results  Distinctions are fuzzy witten&eibe

32 Knowledge Discovery Process flow, according to CRISP-DM Monitoring see for more information

33 Historical Note: Many Names of Data Mining  Data Fishing, Data Dredging:  used by Statistician (as bad name)  Data Mining :  used DB, business  in 2003 – bad image because of TIA  Knowledge Discovery in Databases (1989-)  used by AI, Machine Learning Community  also Data Archaeology, Information Harvesting, Information Discovery, Knowledge Extraction,... Currently: Data Mining and Knowledge Discovery are used interchangeably

34 Lesson Outline  Introduction: Data Flood  Data Mining Application Examples  Data Mining & Knowledge Discovery  Data Mining Tasks

35 Major Data Mining Tasks  Classification: predicting an item class  Clustering: finding clusters in data  Associations: e.g. A & B & C occur frequently  Visualization: to facilitate human discovery  Summarization: describing a group  Deviation Detection: finding changes  Estimation: predicting a continuous value  Link Analysis: finding relationships  …

36 Data Mining Tasks: Classification Learn a method for predicting the instance class from pre-labeled (classified) instances Many approaches: Statistics, Decision Trees, Neural Networks,...

37 Data Mining Tasks: Clustering Find “natural” grouping of instances given un-labeled data

38 Summary:  Technology trends lead to data flood  data mining is needed to make sense of data  Data Mining has many applications, successful and not  Knowledge Discovery Process  Data Mining Tasks  classification, clustering, …

39 More on Data Mining and Knowledge Discovery KDnuggets.com  News, Publications  Software, Solutions  Courses, Meetings, Education  Publications, Websites, Datasets  Companies, Jobs  …

40 Data Mining Jobs in KDnuggets