Thursday, January 06, 2005

Knowledge Discovery Approaches

Data Mining enables us to automatically sift through mass amounts of data to discover KNOWLEDGE. A couple popular approaches are summarized below:

  • Identify customer groups and forecast their behaviour. This is commonly used in Marketing, fraud detection, and more and more frequently on the web for various purposes.

  • Market basket analysis: "If customer bought product P, he or she
    is likely to buy product Q and R" (Amazon.com uses this approach)
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