When learning classification rules the system has to find the rules that predict the class from the predicting attributes so firstly the user has to define conditions for each class, the data mine system then constructs descriptions for the classes. Basically the system should given a case or tuple with certain known attribute values be able to predict what class this case belongs to.
Once classes are defined the system should infer rules that govern the classification therefore the system should be able to find the description of each class. The descriptions should only refer to the predicting attributes of the training set so that the positive examples should satisfy the description and none of the negative. A rule said to be correct if its description covers all the positive examples and none of the negative examples of a class.
A rule is generally presented as, if the left hand side (LHS) then the right hand side (RHS), so that in all instances where LHS is true then RHS is also true, are very probable. The categories of rules are:
Other types of rules are classification rules where LHS is a sufficient condition to classify objects as belonging to the concept referred to in the RHS.
A typical application, identified by IBM, that can be built using an association function is Market Basket Analysis. This is where a retailer run an association operator over the point of sales transaction log, which contains among other information, transaction identifiers and product identifiers. The set of products identifiers listed under the same transaction identifier constitutes a record. The output of the association function is, in this case, a list of product affinities. Thus, by invoking an association function, the market basket analysis application can determine affinities such as "20% of the time that a specific brand toaster is sold, customers also buy a set of kitchen gloves and matching cover sets."
Another example of the use of associations is the analysis of the claim forms submitted by patients to a medical insurance company. Every claim form contains a set of medical procedures that were performed on a given patient during one visit. By defining the set of items to be the collection of all medical procedures that can be performed on a patient and the records to correspond to each claim form, the application can find, using the association function, relationships among medical procedures that are often performed together.
Sequential pattern mining functions are quite powerful and can be used to detect the set of customers associated with some frequent buying patterns. Use of these functions on for example a set of insurance claims can lead to the identification of frequently occurring sequences of medical procedures applied to patients which can help identify good medical practices as well as to potentially detect some medical insurance fraud.
Clustering according to similarity is a very powerful technique, the key to it being to translate some intuitive measure of similarity into a quantitative measure. When learning is unsupervised then the system has to discover its own classes i.e. the system clusters the data in the database. The system has to discover subsets of related objects in the training set and then it has to find descriptions that describe each of these subsets.
There are a number of approachs for forming clusters. One approach is to form rules which dictate membership in the same group based on the level of similarity between members. Another approach is to build set functions that measure some property of partitions as functions of some parameter of the partition.
Each segment reports total revenue and number of baskets and using a neural network 275,000 transaction records were divided into 16 segments. The following types of analysis were also available, revenue by segment, baskets by segment, average revenue by segment etc.