SlideShare a Scribd company logo
1 of 22
Master the Art of Analytics
A Simplistic Explainer Series For Citizen Data Scientists
J o u r n e y To w a r d s A u g m e n t e d A n a l y t i c s
Frequent Pattern Mining
Introduction
Basic terminologies
with example
Standard input/tuning parameters & Sample UI
Sample output UI
Interpretation of Output
Limitations
Business use cases
What Are
All Covered
INTRODUCTION
 Association rule mining is a procedure which
finds frequent patterns, associations, or causal
structures from data sets found in various kinds
of databases such as relational databases,
transactional databases, and other forms of
data repositories
 Given a set of transactions, association rule
mining aims to find the rules which enable us
to predict the occurrence of a specific item
based on the occurrences of the other items in
the transaction
BASIC
TERMINOLOGIES
• ANTECEDENT:
• Left hand side of the rule is called Antecedent
• For instance, for the rule milk->bread, milk is antecedent
• CONSEQUENT:
• Right hand side of the rule is called Consequent
• For instance, for the rule milk->bread, bread is consequent
• SUPPORT :
• The support of a rule x -> y (where x and y are each items/events
etc.) is defined as the proportion of transactions in the data set
which contain the item set x as well as y
• Thus, Support (x -> y)= no. of transactions which contain the item
set x & y / total no. of transactions
•
BASIC
TERMINOLOGIES
• CONFIDENCE :
• The confidence of a rule x -> y is defined as:
• Support ( x -> y ) / support (x)
• Thus it is the ratio of the number of
transactions that include all items in the
consequent (y in this case), as well as the
antecedent( x in this case) to the number of
transactions that include all items in the
antecedent ( x in this case )
• LIFT :
• The lift of a rule x -> y is defined as:
• Support ( x -> y ) / support (x) * support (y)
Here , support (Milk -> Bread):
= Number of transactions containing milk &
bread / total transactions
= 2/5 = 0.4
TID Milk Bread Butter Beer
1 1 0 1 1
2 1 1 1 0
3 0 1 1 0
4 1 0 0 1
5 1 1 1 1
Confidence (Milk -> Bread):
= support (milk-> bread)/ support(milk)
= 0.4/ [4/5]
=0.4/ 0.8
=0.5
Lift (Milk -> Bread):
= support (milk-> bread)/ support(milk) *
support(bread)
= 0.4/ [(4/5) * (3/5)]
=0.4/ [0.8*0.6] = 0.4/0.48
=0.83
 Support (milk->bread) = 0.4
means milk & bread together
occur in 40% of all transactions
 Confidence (milk->bread) = 0.5
means, if there are 100
transactions containing milk then
there are 50 of them containing
bread also
Example
Example
Similarly , support, confidence and lift values
of all item combinations are found and the
rules matching user defined threshold of
support and confidence will be displayed in
final output as shown below :
For instance, for minimum support = 0.3 and
minimum confidence =0.3, sample rules
generated would be as shown below ,
depicting frequent item sets or best
performing combination of item sets
Rule Support Confidence Lift
Bread->Butter 0.5 0.6 0.86
Milk -> Bread 0.4 0.5 0.83
Milk -> Butter 0.3 0.5 0.78
Bread-> Beer 0.3 0.4 0.68
INTERPRETATION :
Example
Rule Support Confidence Lift
Bread->Butter 0.5 0.6 0.86
Milk -> Bread 0.4 0.5 0.83
Milk -> Butter 0.3 0.5 0.78
Bread-> Beer 0.3 0.4 0.68
• In this case, Bread -> Butter rule has highest
propensity to be bought together as it has
highest support as well as confidence,
followed by Milk -> Bread, Milk -> Butter
and Bread -> Beer
• As support (Bread-> Butter ) = 0.5, there are
50% transactions containing bread and
butter
• As confidence (Bread-> Butter ) = 0.6 , if
there are 100 transactions containing bread
then there are 60 of them containing butter
also
• A lift larger than 1.0 implies that the
relationship between the antecedent and
the consequent is more significant than
would be expected if the two were
independent. The larger the lift, the more
significant the association
Standard Input Parameters & Sample UI
Standard Output 1 :
Model Summary
Rules that have both high confidence and
support are called strong rules
Even if confidence reaches high values, the
rule is not useful unless the support value is
high as well
In this case, Bread -> Butter rule has highest
propensity to be bought together as it has
highest support as well as confidence,
followed by Milk -> Bread, Milk -> Butter and
Bread -> Beer
There are 50% transactions containing break
and butter, and if there are 100 transactions
containing bread, 60 of them also has butter
INTERPRETATION :
Rule Support Confidence Lift
Shampoo -> Soap 0.5 0.5 0.86
Cold drink -> Snacks 0.4 0.4 0.83
Fruit -> Vegetables 0.3 0.35 0.78
Milk > Egg 0.3 0.30 0.68
INTERPRETATION :
Sample Output 2 :
Plot : Confidence By
Rules
The confidence value of each rule is
shown in the plot above
As confidence value takes into
account the sequence of items in the
association rule, this plot is built
based on confidence values instead of
support or lift
The product combinations shown in
dark green color in plot above have
the highest likelihood to be bought
together and in sequence
Darker the color, more the likelihood
of products being bought together
and sequentially
Sample Output 2:
Plot : Support &
confidence by rule
• Ideally both support and
confidence should be taken into
account to come up with best rules
because support only indicates the
frequency of both items being sold
together where as confidence takes
care of sequence of purchase also
• Hence, alternatively , a bubble
scatter plot using support and
confidence measures can be used to
focus on rules with high support as
well as confidence
LIMITATIONS :
 Processing time for running this algorithm is
relatively high when compared to other
algorithms due to millions of transaction level
data in input
 The user must possess a certain amount of
expertise in order to find the right settings for
support and confidence to obtain the best
association rules
GENERAL
APPLICATIONS
• BASKET DATA ANALYSIS
• To analyze the association of purchased items in a single basket or
single purchase
• CROSS MARKETING/SELLING
• To work with other businesses that complement your own, not
competitors.
• For example, vehicle dealerships and manufacturers have cross
marketing campaigns with oil and gas companies for obvious reasons
• CATALOG DESIGN
• The selection of items in a business’ catalog are often designed to
complement each other so that buying one item will lead to buying of
another. So these items are often complements or very related
• MEDICAL TREATMENTS
• Each patient is represented as a transaction containing the ordered set
of diseases and which diseases are likely to occur simultaneously /
sequentially can be predicted
USE CASE 1
Business benefit:
• Based on the association rules
generated, the store manager will
be able to strategically place the
products together or in sequence
leading to growth in sales and in
turn revenue of the store
• Offers such as “Buy this and get this
free” or “Buy this and get %off on
this” can be designed based on the
association rules generated
Business problem :
• A retail store manager wants to
conduct Market Basket analysis to
come up with better strategy of
products placement and product
bundling
Use case 1 : Sample Input Dataset
Transaction ID Product 1 Product 2 Product 3
1039153 Milk Bread Jam
1069697 Shampoo Soap Tooth paste
1068120 Cold drink Snacks Ear ring
563175 Hand wash Antiseptic liquid Hand sanitizer
562842 Fruit Vegetables Ketchup
562681 Cold drink Snacks Ear ring
562404 Shampoo Soap -
700159 Bread Jam -
696484 Milk Fruit Vegetables
Use Case 1 : Sample Output 1 : Association
Rules
Rule Support Confidence Lift
Shampoo -> Soap 0.5 0.6 0.86
Cold drink -> Snacks 0.4 0.5 0.83
Fruits -> Vegetables 0.3 0.5 0.78
Bread -> Jam 0.3 0.3 0.67
Output : Based on the threshold set by user or automatically selected by algorithm, the best product combinations
will show up in the form of association rules, along with their support, confidence and lift values as shown below :
Use Case 1 : Sample Output 2: Plot :
Confidence By Rule
• Based on the association rules
generated, the heat map plot can
be shown as above , indicating
rules having high confidence or
support with darker shade of a
particular color and those having
lower support or confidence
values with lighter shade of a
same color
• End user can simply focus on the
rules shown in dark color to come
up with better product bundling or
placement in order to increase the
cross sell
Use case 2
Business benefit:
• Based on the rules generated,
banking products can be cross sold
to each existing or prospective
customer to drive sales and bank
revenue
• For instance, if saving ,personal
loan and credit card are frequently
sequentially bought then a new
saving account customer can be
cross sold with personal loan and
credit card
Business problem :
• A bank marketing manager may
want to analyze which products are
frequently and sequentially bought
together
• Each customer is represented as a
transaction containing the ordered
set of products and which products
are likely to be purchased
simultaneously / sequentially can
be predicted
Use case 3
Business problem :
•A telecom marketing manager may want
to analyze which value added services are
frequently and sequentially bought
together
•Each customer is represented as a
transaction containing the ordered set of
value added services and which services
are likely to be purchased simultaneously
/ sequentially can be predicted
Business benefit:
•Based on the rules generated, value
added services can be cross sold to each
existing or prospective customer to drive
sales and revenue of a telecom service
provider
•For instance, if a group calling sim, 1 GB
internet plan and 500 minutes plan is
generally opted out plan by most of the
customers than whenever a new
prospective customer comes in for group
calling sim card, then he or she can be
targeted with 1 GB internet plan and 500
minutes plan
Want to Learn
More?
Get in touch with us @
support@Smarten.com
And Do Checkout the Learning section
on
Smarten.com
June 2018

More Related Content

What's hot

What Is Generalized Linear Regression with Gaussian Distribution And How Can ...
What Is Generalized Linear Regression with Gaussian Distribution And How Can ...What Is Generalized Linear Regression with Gaussian Distribution And How Can ...
What Is Generalized Linear Regression with Gaussian Distribution And How Can ...Smarten Augmented Analytics
 
What is Descriptive Statistics and How Do You Choose the Right One for Enterp...
What is Descriptive Statistics and How Do You Choose the Right One for Enterp...What is Descriptive Statistics and How Do You Choose the Right One for Enterp...
What is Descriptive Statistics and How Do You Choose the Right One for Enterp...Smarten Augmented Analytics
 
What is Multiple Linear Regression and How Can it be Helpful for Business Ana...
What is Multiple Linear Regression and How Can it be Helpful for Business Ana...What is Multiple Linear Regression and How Can it be Helpful for Business Ana...
What is Multiple Linear Regression and How Can it be Helpful for Business Ana...Smarten Augmented Analytics
 
Mba2216 week 11 data analysis part 02
Mba2216 week 11 data analysis part 02Mba2216 week 11 data analysis part 02
Mba2216 week 11 data analysis part 02Stephen Ong
 
Exploratory Data Analysis for Biotechnology and Pharmaceutical Sciences
Exploratory Data Analysis for Biotechnology and Pharmaceutical SciencesExploratory Data Analysis for Biotechnology and Pharmaceutical Sciences
Exploratory Data Analysis for Biotechnology and Pharmaceutical SciencesParag Shah
 
Marketing Optimization Augmented Analytics Use Cases - Smarten
Marketing Optimization Augmented Analytics Use Cases - SmartenMarketing Optimization Augmented Analytics Use Cases - Smarten
Marketing Optimization Augmented Analytics Use Cases - SmartenSmarten Augmented Analytics
 
Chapter 15 Marketing Research Malhotra
Chapter 15 Marketing Research MalhotraChapter 15 Marketing Research Malhotra
Chapter 15 Marketing Research MalhotraAADITYA TANTIA
 
Data Science - Part VI - Market Basket and Product Recommendation Engines
Data Science - Part VI - Market Basket and Product Recommendation EnginesData Science - Part VI - Market Basket and Product Recommendation Engines
Data Science - Part VI - Market Basket and Product Recommendation EnginesDerek Kane
 
Data analysis test for association BY Prof Sachin Udepurkar
Data analysis   test for association BY Prof Sachin UdepurkarData analysis   test for association BY Prof Sachin Udepurkar
Data analysis test for association BY Prof Sachin Udepurkarsachinudepurkar
 
SPSS statistics - get help using SPSS
SPSS statistics - get help using SPSSSPSS statistics - get help using SPSS
SPSS statistics - get help using SPSScsula its training
 
2 presentations malhotra-mr05_ppt_16
2 presentations malhotra-mr05_ppt_162 presentations malhotra-mr05_ppt_16
2 presentations malhotra-mr05_ppt_16AADITYA TANTIA
 
T test, independant sample, paired sample and anova
T test, independant sample, paired sample and anovaT test, independant sample, paired sample and anova
T test, independant sample, paired sample and anovaQasim Raza
 
Workshop on SPSS: Basic to Intermediate Level
Workshop on SPSS: Basic to Intermediate LevelWorkshop on SPSS: Basic to Intermediate Level
Workshop on SPSS: Basic to Intermediate LevelHiram Ting
 
Chapter 8 by Malhotra
Chapter 8 by MalhotraChapter 8 by Malhotra
Chapter 8 by MalhotraEnamul Islam
 

What's hot (20)

What Is Generalized Linear Regression with Gaussian Distribution And How Can ...
What Is Generalized Linear Regression with Gaussian Distribution And How Can ...What Is Generalized Linear Regression with Gaussian Distribution And How Can ...
What Is Generalized Linear Regression with Gaussian Distribution And How Can ...
 
What is Descriptive Statistics and How Do You Choose the Right One for Enterp...
What is Descriptive Statistics and How Do You Choose the Right One for Enterp...What is Descriptive Statistics and How Do You Choose the Right One for Enterp...
What is Descriptive Statistics and How Do You Choose the Right One for Enterp...
 
What is Multiple Linear Regression and How Can it be Helpful for Business Ana...
What is Multiple Linear Regression and How Can it be Helpful for Business Ana...What is Multiple Linear Regression and How Can it be Helpful for Business Ana...
What is Multiple Linear Regression and How Can it be Helpful for Business Ana...
 
Mba2216 week 11 data analysis part 02
Mba2216 week 11 data analysis part 02Mba2216 week 11 data analysis part 02
Mba2216 week 11 data analysis part 02
 
Exploratory Data Analysis for Biotechnology and Pharmaceutical Sciences
Exploratory Data Analysis for Biotechnology and Pharmaceutical SciencesExploratory Data Analysis for Biotechnology and Pharmaceutical Sciences
Exploratory Data Analysis for Biotechnology and Pharmaceutical Sciences
 
Marketing Optimization Augmented Analytics Use Cases - Smarten
Marketing Optimization Augmented Analytics Use Cases - SmartenMarketing Optimization Augmented Analytics Use Cases - Smarten
Marketing Optimization Augmented Analytics Use Cases - Smarten
 
Chap019
Chap019Chap019
Chap019
 
factor analysis
factor analysisfactor analysis
factor analysis
 
Spss software
Spss softwareSpss software
Spss software
 
Chapter 15 Marketing Research Malhotra
Chapter 15 Marketing Research MalhotraChapter 15 Marketing Research Malhotra
Chapter 15 Marketing Research Malhotra
 
Data Science - Part VI - Market Basket and Product Recommendation Engines
Data Science - Part VI - Market Basket and Product Recommendation EnginesData Science - Part VI - Market Basket and Product Recommendation Engines
Data Science - Part VI - Market Basket and Product Recommendation Engines
 
Data analysis test for association BY Prof Sachin Udepurkar
Data analysis   test for association BY Prof Sachin UdepurkarData analysis   test for association BY Prof Sachin Udepurkar
Data analysis test for association BY Prof Sachin Udepurkar
 
Multivariate
MultivariateMultivariate
Multivariate
 
Statistical analysis in SPSS_
Statistical analysis in SPSS_ Statistical analysis in SPSS_
Statistical analysis in SPSS_
 
SPSS statistics - get help using SPSS
SPSS statistics - get help using SPSSSPSS statistics - get help using SPSS
SPSS statistics - get help using SPSS
 
Using SPSS: A Tutorial
Using SPSS: A TutorialUsing SPSS: A Tutorial
Using SPSS: A Tutorial
 
2 presentations malhotra-mr05_ppt_16
2 presentations malhotra-mr05_ppt_162 presentations malhotra-mr05_ppt_16
2 presentations malhotra-mr05_ppt_16
 
T test, independant sample, paired sample and anova
T test, independant sample, paired sample and anovaT test, independant sample, paired sample and anova
T test, independant sample, paired sample and anova
 
Workshop on SPSS: Basic to Intermediate Level
Workshop on SPSS: Basic to Intermediate LevelWorkshop on SPSS: Basic to Intermediate Level
Workshop on SPSS: Basic to Intermediate Level
 
Chapter 8 by Malhotra
Chapter 8 by MalhotraChapter 8 by Malhotra
Chapter 8 by Malhotra
 

Similar to What is FP Growth Analysis and How Can a Business Use Frequent Pattern Mining to Analyze Data?

Market basketanalysis using r
Market basketanalysis using rMarket basketanalysis using r
Market basketanalysis using rYogesh Khandelwal
 
Instacart Market Basket Analysis
Instacart Market Basket AnalysisInstacart Market Basket Analysis
Instacart Market Basket AnalysisSharanya Prathap
 
Market Basket Analysis
Market Basket AnalysisMarket Basket Analysis
Market Basket AnalysisSandeep Prasad
 
Market Basket Analysis.pptx
Market Basket Analysis.pptxMarket Basket Analysis.pptx
Market Basket Analysis.pptxssuserb7effa
 
big data seminar.pptx
big data seminar.pptxbig data seminar.pptx
big data seminar.pptxAmenahAbbood
 
MODULE 5 _ Mining frequent patterns and associations.pptx
MODULE 5 _ Mining frequent patterns and associations.pptxMODULE 5 _ Mining frequent patterns and associations.pptx
MODULE 5 _ Mining frequent patterns and associations.pptxnikshaikh786
 
6. Association Rule.pdf
6. Association Rule.pdf6. Association Rule.pdf
6. Association Rule.pdfJyoti Yadav
 
2023 Supervised_Learning_Association_Rules
2023 Supervised_Learning_Association_Rules2023 Supervised_Learning_Association_Rules
2023 Supervised_Learning_Association_RulesFEG
 
Market Basket Analysis of bakery Shop
Market Basket Analysis of bakery ShopMarket Basket Analysis of bakery Shop
Market Basket Analysis of bakery ShopVarunSahdev2
 
Association rule mining and Apriori algorithm
Association rule mining and Apriori algorithmAssociation rule mining and Apriori algorithm
Association rule mining and Apriori algorithmhina firdaus
 
Reducing the gap between Consumer and Retailer using Association Rule Mining ...
Reducing the gap between Consumer and Retailer using Association Rule Mining ...Reducing the gap between Consumer and Retailer using Association Rule Mining ...
Reducing the gap between Consumer and Retailer using Association Rule Mining ...IRJET Journal
 
Vladimir tingue - new venture strategy and real options
Vladimir tingue  - new venture strategy and real optionsVladimir tingue  - new venture strategy and real options
Vladimir tingue - new venture strategy and real optionsVladimirTingue
 
Association 04.03.14
Association   04.03.14Association   04.03.14
Association 04.03.14rahulmath80
 
Learning ObjectivesAfter completing this chapter, you shou.docx
Learning ObjectivesAfter completing this chapter, you shou.docxLearning ObjectivesAfter completing this chapter, you shou.docx
Learning ObjectivesAfter completing this chapter, you shou.docxsmile790243
 
Association and Classification Algorithm
Association and Classification AlgorithmAssociation and Classification Algorithm
Association and Classification AlgorithmMedicaps University
 
Group2 hbr article 2 submission2
Group2 hbr article 2 submission2Group2 hbr article 2 submission2
Group2 hbr article 2 submission2Sameer Mathur
 
What goes with what (Market Basket Analysis)
What goes with what (Market Basket Analysis)What goes with what (Market Basket Analysis)
What goes with what (Market Basket Analysis)Kumar P
 

Similar to What is FP Growth Analysis and How Can a Business Use Frequent Pattern Mining to Analyze Data? (20)

Unit 4_ML.pptx
Unit 4_ML.pptxUnit 4_ML.pptx
Unit 4_ML.pptx
 
Market basketanalysis using r
Market basketanalysis using rMarket basketanalysis using r
Market basketanalysis using r
 
Instacart Market Basket Analysis
Instacart Market Basket AnalysisInstacart Market Basket Analysis
Instacart Market Basket Analysis
 
Market Basket Analysis
Market Basket AnalysisMarket Basket Analysis
Market Basket Analysis
 
Market Basket Analysis.pptx
Market Basket Analysis.pptxMarket Basket Analysis.pptx
Market Basket Analysis.pptx
 
big data seminar.pptx
big data seminar.pptxbig data seminar.pptx
big data seminar.pptx
 
MODULE 5 _ Mining frequent patterns and associations.pptx
MODULE 5 _ Mining frequent patterns and associations.pptxMODULE 5 _ Mining frequent patterns and associations.pptx
MODULE 5 _ Mining frequent patterns and associations.pptx
 
6. Association Rule.pdf
6. Association Rule.pdf6. Association Rule.pdf
6. Association Rule.pdf
 
2023 Supervised_Learning_Association_Rules
2023 Supervised_Learning_Association_Rules2023 Supervised_Learning_Association_Rules
2023 Supervised_Learning_Association_Rules
 
BAS 250 Lecture 4
BAS 250 Lecture 4BAS 250 Lecture 4
BAS 250 Lecture 4
 
Market Basket Analysis of bakery Shop
Market Basket Analysis of bakery ShopMarket Basket Analysis of bakery Shop
Market Basket Analysis of bakery Shop
 
Association rule mining and Apriori algorithm
Association rule mining and Apriori algorithmAssociation rule mining and Apriori algorithm
Association rule mining and Apriori algorithm
 
Apriori Algorithm.pptx
Apriori Algorithm.pptxApriori Algorithm.pptx
Apriori Algorithm.pptx
 
Reducing the gap between Consumer and Retailer using Association Rule Mining ...
Reducing the gap between Consumer and Retailer using Association Rule Mining ...Reducing the gap between Consumer and Retailer using Association Rule Mining ...
Reducing the gap between Consumer and Retailer using Association Rule Mining ...
 
Vladimir tingue - new venture strategy and real options
Vladimir tingue  - new venture strategy and real optionsVladimir tingue  - new venture strategy and real options
Vladimir tingue - new venture strategy and real options
 
Association 04.03.14
Association   04.03.14Association   04.03.14
Association 04.03.14
 
Learning ObjectivesAfter completing this chapter, you shou.docx
Learning ObjectivesAfter completing this chapter, you shou.docxLearning ObjectivesAfter completing this chapter, you shou.docx
Learning ObjectivesAfter completing this chapter, you shou.docx
 
Association and Classification Algorithm
Association and Classification AlgorithmAssociation and Classification Algorithm
Association and Classification Algorithm
 
Group2 hbr article 2 submission2
Group2 hbr article 2 submission2Group2 hbr article 2 submission2
Group2 hbr article 2 submission2
 
What goes with what (Market Basket Analysis)
What goes with what (Market Basket Analysis)What goes with what (Market Basket Analysis)
What goes with what (Market Basket Analysis)
 

More from Smarten Augmented Analytics

Crime Type Prediction - Augmented Analytics Use Case – Smarten
Crime Type Prediction - Augmented Analytics Use Case – SmartenCrime Type Prediction - Augmented Analytics Use Case – Smarten
Crime Type Prediction - Augmented Analytics Use Case – SmartenSmarten Augmented Analytics
 
What Is Multilayer Perceptron Classifier And How Is It Used For Enterprise An...
What Is Multilayer Perceptron Classifier And How Is It Used For Enterprise An...What Is Multilayer Perceptron Classifier And How Is It Used For Enterprise An...
What Is Multilayer Perceptron Classifier And How Is It Used For Enterprise An...Smarten Augmented Analytics
 
What Is Random Forest Classification And How Can It Help Your Business?
What Is Random Forest Classification And How Can It Help Your Business?What Is Random Forest Classification And How Can It Help Your Business?
What Is Random Forest Classification And How Can It Help Your Business?Smarten Augmented Analytics
 
What is Isotonic Regression and How Can a Business Utilize it to Analyze Data?
What is Isotonic Regression and How Can a Business Utilize it to Analyze Data?What is Isotonic Regression and How Can a Business Utilize it to Analyze Data?
What is Isotonic Regression and How Can a Business Utilize it to Analyze Data?Smarten Augmented Analytics
 
Students' Academic Performance Predictive Analytics Use Case – Smarten
Students' Academic Performance Predictive Analytics Use Case – SmartenStudents' Academic Performance Predictive Analytics Use Case – Smarten
Students' Academic Performance Predictive Analytics Use Case – SmartenSmarten Augmented Analytics
 
What is Simple Linear Regression and How Can an Enterprise Use this Technique...
What is Simple Linear Regression and How Can an Enterprise Use this Technique...What is Simple Linear Regression and How Can an Enterprise Use this Technique...
What is Simple Linear Regression and How Can an Enterprise Use this Technique...Smarten Augmented Analytics
 
Fraud Mitigation Predictive Analytics Use Case – Smarten
Fraud Mitigation Predictive Analytics Use Case – SmartenFraud Mitigation Predictive Analytics Use Case – Smarten
Fraud Mitigation Predictive Analytics Use Case – SmartenSmarten Augmented Analytics
 
Quality Control Predictive Analytics Use Case - Smarten
Quality Control Predictive Analytics Use Case - SmartenQuality Control Predictive Analytics Use Case - Smarten
Quality Control Predictive Analytics Use Case - SmartenSmarten Augmented Analytics
 
Machine Maintenance Management Predictive Analytics Use Case - Smarten
Machine Maintenance Management Predictive Analytics Use Case - SmartenMachine Maintenance Management Predictive Analytics Use Case - Smarten
Machine Maintenance Management Predictive Analytics Use Case - SmartenSmarten Augmented Analytics
 
Predictive Analytics Using External Data Augmented Analytics Use Case - Smarten
Predictive Analytics Using External Data Augmented Analytics Use Case - SmartenPredictive Analytics Using External Data Augmented Analytics Use Case - Smarten
Predictive Analytics Using External Data Augmented Analytics Use Case - SmartenSmarten Augmented Analytics
 
Human Resource Attrition Augmented Analytics Use Case - Smarten
Human Resource Attrition Augmented Analytics Use Case - SmartenHuman Resource Attrition Augmented Analytics Use Case - Smarten
Human Resource Attrition Augmented Analytics Use Case - SmartenSmarten Augmented Analytics
 
Customer Targeting Augmented Analytics Use Case - Smarten
Customer Targeting Augmented Analytics Use Case - SmartenCustomer Targeting Augmented Analytics Use Case - Smarten
Customer Targeting Augmented Analytics Use Case - SmartenSmarten Augmented Analytics
 
What is Naïve Bayes Classification and How is it Used for Enterprise Analysis?
What is Naïve Bayes Classification and How is it Used for Enterprise Analysis?What is Naïve Bayes Classification and How is it Used for Enterprise Analysis?
What is Naïve Bayes Classification and How is it Used for Enterprise Analysis?Smarten Augmented Analytics
 
What is KNN Classification and How Can This Analysis Help an Enterprise?
What is KNN Classification and How Can This Analysis Help an Enterprise?What is KNN Classification and How Can This Analysis Help an Enterprise?
What is KNN Classification and How Can This Analysis Help an Enterprise?Smarten Augmented Analytics
 
What Are Simple Random Sampling and Stratified Random Sampling Analytical Tec...
What Are Simple Random Sampling and Stratified Random Sampling Analytical Tec...What Are Simple Random Sampling and Stratified Random Sampling Analytical Tec...
What Are Simple Random Sampling and Stratified Random Sampling Analytical Tec...Smarten Augmented Analytics
 
What is Simple Linear Regression and How Can an Enterprise Use this Technique...
What is Simple Linear Regression and How Can an Enterprise Use this Technique...What is Simple Linear Regression and How Can an Enterprise Use this Technique...
What is Simple Linear Regression and How Can an Enterprise Use this Technique...Smarten Augmented Analytics
 
What is ARIMAX Forecasting and How is it Used for Enterprise Analysis?
What is ARIMAX Forecasting and How is it Used for Enterprise Analysis?What is ARIMAX Forecasting and How is it Used for Enterprise Analysis?
What is ARIMAX Forecasting and How is it Used for Enterprise Analysis?Smarten Augmented Analytics
 
What is Karl Pearson Correlation Analysis and How Can it be Used for Enterpri...
What is Karl Pearson Correlation Analysis and How Can it be Used for Enterpri...What is Karl Pearson Correlation Analysis and How Can it be Used for Enterpri...
What is Karl Pearson Correlation Analysis and How Can it be Used for Enterpri...Smarten Augmented Analytics
 
What is Hierarchical Clustering and How Can an Organization Use it to Analyze...
What is Hierarchical Clustering and How Can an Organization Use it to Analyze...What is Hierarchical Clustering and How Can an Organization Use it to Analyze...
What is Hierarchical Clustering and How Can an Organization Use it to Analyze...Smarten Augmented Analytics
 
What is SVM Classification Analysis and How Can It Benefit Business Analytics?
What is SVM Classification Analysis and How Can It Benefit Business Analytics?What is SVM Classification Analysis and How Can It Benefit Business Analytics?
What is SVM Classification Analysis and How Can It Benefit Business Analytics?Smarten Augmented Analytics
 

More from Smarten Augmented Analytics (20)

Crime Type Prediction - Augmented Analytics Use Case – Smarten
Crime Type Prediction - Augmented Analytics Use Case – SmartenCrime Type Prediction - Augmented Analytics Use Case – Smarten
Crime Type Prediction - Augmented Analytics Use Case – Smarten
 
What Is Multilayer Perceptron Classifier And How Is It Used For Enterprise An...
What Is Multilayer Perceptron Classifier And How Is It Used For Enterprise An...What Is Multilayer Perceptron Classifier And How Is It Used For Enterprise An...
What Is Multilayer Perceptron Classifier And How Is It Used For Enterprise An...
 
What Is Random Forest Classification And How Can It Help Your Business?
What Is Random Forest Classification And How Can It Help Your Business?What Is Random Forest Classification And How Can It Help Your Business?
What Is Random Forest Classification And How Can It Help Your Business?
 
What is Isotonic Regression and How Can a Business Utilize it to Analyze Data?
What is Isotonic Regression and How Can a Business Utilize it to Analyze Data?What is Isotonic Regression and How Can a Business Utilize it to Analyze Data?
What is Isotonic Regression and How Can a Business Utilize it to Analyze Data?
 
Students' Academic Performance Predictive Analytics Use Case – Smarten
Students' Academic Performance Predictive Analytics Use Case – SmartenStudents' Academic Performance Predictive Analytics Use Case – Smarten
Students' Academic Performance Predictive Analytics Use Case – Smarten
 
What is Simple Linear Regression and How Can an Enterprise Use this Technique...
What is Simple Linear Regression and How Can an Enterprise Use this Technique...What is Simple Linear Regression and How Can an Enterprise Use this Technique...
What is Simple Linear Regression and How Can an Enterprise Use this Technique...
 
Fraud Mitigation Predictive Analytics Use Case – Smarten
Fraud Mitigation Predictive Analytics Use Case – SmartenFraud Mitigation Predictive Analytics Use Case – Smarten
Fraud Mitigation Predictive Analytics Use Case – Smarten
 
Quality Control Predictive Analytics Use Case - Smarten
Quality Control Predictive Analytics Use Case - SmartenQuality Control Predictive Analytics Use Case - Smarten
Quality Control Predictive Analytics Use Case - Smarten
 
Machine Maintenance Management Predictive Analytics Use Case - Smarten
Machine Maintenance Management Predictive Analytics Use Case - SmartenMachine Maintenance Management Predictive Analytics Use Case - Smarten
Machine Maintenance Management Predictive Analytics Use Case - Smarten
 
Predictive Analytics Using External Data Augmented Analytics Use Case - Smarten
Predictive Analytics Using External Data Augmented Analytics Use Case - SmartenPredictive Analytics Using External Data Augmented Analytics Use Case - Smarten
Predictive Analytics Using External Data Augmented Analytics Use Case - Smarten
 
Human Resource Attrition Augmented Analytics Use Case - Smarten
Human Resource Attrition Augmented Analytics Use Case - SmartenHuman Resource Attrition Augmented Analytics Use Case - Smarten
Human Resource Attrition Augmented Analytics Use Case - Smarten
 
Customer Targeting Augmented Analytics Use Case - Smarten
Customer Targeting Augmented Analytics Use Case - SmartenCustomer Targeting Augmented Analytics Use Case - Smarten
Customer Targeting Augmented Analytics Use Case - Smarten
 
What is Naïve Bayes Classification and How is it Used for Enterprise Analysis?
What is Naïve Bayes Classification and How is it Used for Enterprise Analysis?What is Naïve Bayes Classification and How is it Used for Enterprise Analysis?
What is Naïve Bayes Classification and How is it Used for Enterprise Analysis?
 
What is KNN Classification and How Can This Analysis Help an Enterprise?
What is KNN Classification and How Can This Analysis Help an Enterprise?What is KNN Classification and How Can This Analysis Help an Enterprise?
What is KNN Classification and How Can This Analysis Help an Enterprise?
 
What Are Simple Random Sampling and Stratified Random Sampling Analytical Tec...
What Are Simple Random Sampling and Stratified Random Sampling Analytical Tec...What Are Simple Random Sampling and Stratified Random Sampling Analytical Tec...
What Are Simple Random Sampling and Stratified Random Sampling Analytical Tec...
 
What is Simple Linear Regression and How Can an Enterprise Use this Technique...
What is Simple Linear Regression and How Can an Enterprise Use this Technique...What is Simple Linear Regression and How Can an Enterprise Use this Technique...
What is Simple Linear Regression and How Can an Enterprise Use this Technique...
 
What is ARIMAX Forecasting and How is it Used for Enterprise Analysis?
What is ARIMAX Forecasting and How is it Used for Enterprise Analysis?What is ARIMAX Forecasting and How is it Used for Enterprise Analysis?
What is ARIMAX Forecasting and How is it Used for Enterprise Analysis?
 
What is Karl Pearson Correlation Analysis and How Can it be Used for Enterpri...
What is Karl Pearson Correlation Analysis and How Can it be Used for Enterpri...What is Karl Pearson Correlation Analysis and How Can it be Used for Enterpri...
What is Karl Pearson Correlation Analysis and How Can it be Used for Enterpri...
 
What is Hierarchical Clustering and How Can an Organization Use it to Analyze...
What is Hierarchical Clustering and How Can an Organization Use it to Analyze...What is Hierarchical Clustering and How Can an Organization Use it to Analyze...
What is Hierarchical Clustering and How Can an Organization Use it to Analyze...
 
What is SVM Classification Analysis and How Can It Benefit Business Analytics?
What is SVM Classification Analysis and How Can It Benefit Business Analytics?What is SVM Classification Analysis and How Can It Benefit Business Analytics?
What is SVM Classification Analysis and How Can It Benefit Business Analytics?
 

Recently uploaded

CRM Contender Series: HubSpot vs. Salesforce
CRM Contender Series: HubSpot vs. SalesforceCRM Contender Series: HubSpot vs. Salesforce
CRM Contender Series: HubSpot vs. SalesforceBrainSell Technologies
 
Alfresco TTL#157 - Troubleshooting Made Easy: Deciphering Alfresco mTLS Confi...
Alfresco TTL#157 - Troubleshooting Made Easy: Deciphering Alfresco mTLS Confi...Alfresco TTL#157 - Troubleshooting Made Easy: Deciphering Alfresco mTLS Confi...
Alfresco TTL#157 - Troubleshooting Made Easy: Deciphering Alfresco mTLS Confi...Angel Borroy López
 
Xen Safety Embedded OSS Summit April 2024 v4.pdf
Xen Safety Embedded OSS Summit April 2024 v4.pdfXen Safety Embedded OSS Summit April 2024 v4.pdf
Xen Safety Embedded OSS Summit April 2024 v4.pdfStefano Stabellini
 
EY_Graph Database Powered Sustainability
EY_Graph Database Powered SustainabilityEY_Graph Database Powered Sustainability
EY_Graph Database Powered SustainabilityNeo4j
 
Taming Distributed Systems: Key Insights from Wix's Large-Scale Experience - ...
Taming Distributed Systems: Key Insights from Wix's Large-Scale Experience - ...Taming Distributed Systems: Key Insights from Wix's Large-Scale Experience - ...
Taming Distributed Systems: Key Insights from Wix's Large-Scale Experience - ...Natan Silnitsky
 
办理学位证(UQ文凭证书)昆士兰大学毕业证成绩单原版一模一样
办理学位证(UQ文凭证书)昆士兰大学毕业证成绩单原版一模一样办理学位证(UQ文凭证书)昆士兰大学毕业证成绩单原版一模一样
办理学位证(UQ文凭证书)昆士兰大学毕业证成绩单原版一模一样umasea
 
React Server Component in Next.js by Hanief Utama
React Server Component in Next.js by Hanief UtamaReact Server Component in Next.js by Hanief Utama
React Server Component in Next.js by Hanief UtamaHanief Utama
 
Software Project Health Check: Best Practices and Techniques for Your Product...
Software Project Health Check: Best Practices and Techniques for Your Product...Software Project Health Check: Best Practices and Techniques for Your Product...
Software Project Health Check: Best Practices and Techniques for Your Product...Velvetech LLC
 
Ahmed Motair CV April 2024 (Senior SW Developer)
Ahmed Motair CV April 2024 (Senior SW Developer)Ahmed Motair CV April 2024 (Senior SW Developer)
Ahmed Motair CV April 2024 (Senior SW Developer)Ahmed Mater
 
SuccessFactors 1H 2024 Release - Sneak-Peek by Deloitte Germany
SuccessFactors 1H 2024 Release - Sneak-Peek by Deloitte GermanySuccessFactors 1H 2024 Release - Sneak-Peek by Deloitte Germany
SuccessFactors 1H 2024 Release - Sneak-Peek by Deloitte GermanyChristoph Pohl
 
KnowAPIs-UnknownPerf-jaxMainz-2024 (1).pptx
KnowAPIs-UnknownPerf-jaxMainz-2024 (1).pptxKnowAPIs-UnknownPerf-jaxMainz-2024 (1).pptx
KnowAPIs-UnknownPerf-jaxMainz-2024 (1).pptxTier1 app
 
Implementing Zero Trust strategy with Azure
Implementing Zero Trust strategy with AzureImplementing Zero Trust strategy with Azure
Implementing Zero Trust strategy with AzureDinusha Kumarasiri
 
Odoo 14 - eLearning Module In Odoo 14 Enterprise
Odoo 14 - eLearning Module In Odoo 14 EnterpriseOdoo 14 - eLearning Module In Odoo 14 Enterprise
Odoo 14 - eLearning Module In Odoo 14 Enterprisepreethippts
 
Dealing with Cultural Dispersion — Stefano Lambiase — ICSE-SEIS 2024
Dealing with Cultural Dispersion — Stefano Lambiase — ICSE-SEIS 2024Dealing with Cultural Dispersion — Stefano Lambiase — ICSE-SEIS 2024
Dealing with Cultural Dispersion — Stefano Lambiase — ICSE-SEIS 2024StefanoLambiase
 
How to submit a standout Adobe Champion Application
How to submit a standout Adobe Champion ApplicationHow to submit a standout Adobe Champion Application
How to submit a standout Adobe Champion ApplicationBradBedford3
 
Best Web Development Agency- Idiosys USA.pdf
Best Web Development Agency- Idiosys USA.pdfBest Web Development Agency- Idiosys USA.pdf
Best Web Development Agency- Idiosys USA.pdfIdiosysTechnologies1
 
Balasore Best It Company|| Top 10 IT Company || Balasore Software company Odisha
Balasore Best It Company|| Top 10 IT Company || Balasore Software company OdishaBalasore Best It Company|| Top 10 IT Company || Balasore Software company Odisha
Balasore Best It Company|| Top 10 IT Company || Balasore Software company Odishasmiwainfosol
 
Building a General PDE Solving Framework with Symbolic-Numeric Scientific Mac...
Building a General PDE Solving Framework with Symbolic-Numeric Scientific Mac...Building a General PDE Solving Framework with Symbolic-Numeric Scientific Mac...
Building a General PDE Solving Framework with Symbolic-Numeric Scientific Mac...stazi3110
 
BATTLEFIELD ORM: TIPS, TACTICS AND STRATEGIES FOR CONQUERING YOUR DATABASE
BATTLEFIELD ORM: TIPS, TACTICS AND STRATEGIES FOR CONQUERING YOUR DATABASEBATTLEFIELD ORM: TIPS, TACTICS AND STRATEGIES FOR CONQUERING YOUR DATABASE
BATTLEFIELD ORM: TIPS, TACTICS AND STRATEGIES FOR CONQUERING YOUR DATABASEOrtus Solutions, Corp
 

Recently uploaded (20)

CRM Contender Series: HubSpot vs. Salesforce
CRM Contender Series: HubSpot vs. SalesforceCRM Contender Series: HubSpot vs. Salesforce
CRM Contender Series: HubSpot vs. Salesforce
 
Alfresco TTL#157 - Troubleshooting Made Easy: Deciphering Alfresco mTLS Confi...
Alfresco TTL#157 - Troubleshooting Made Easy: Deciphering Alfresco mTLS Confi...Alfresco TTL#157 - Troubleshooting Made Easy: Deciphering Alfresco mTLS Confi...
Alfresco TTL#157 - Troubleshooting Made Easy: Deciphering Alfresco mTLS Confi...
 
Xen Safety Embedded OSS Summit April 2024 v4.pdf
Xen Safety Embedded OSS Summit April 2024 v4.pdfXen Safety Embedded OSS Summit April 2024 v4.pdf
Xen Safety Embedded OSS Summit April 2024 v4.pdf
 
EY_Graph Database Powered Sustainability
EY_Graph Database Powered SustainabilityEY_Graph Database Powered Sustainability
EY_Graph Database Powered Sustainability
 
Taming Distributed Systems: Key Insights from Wix's Large-Scale Experience - ...
Taming Distributed Systems: Key Insights from Wix's Large-Scale Experience - ...Taming Distributed Systems: Key Insights from Wix's Large-Scale Experience - ...
Taming Distributed Systems: Key Insights from Wix's Large-Scale Experience - ...
 
办理学位证(UQ文凭证书)昆士兰大学毕业证成绩单原版一模一样
办理学位证(UQ文凭证书)昆士兰大学毕业证成绩单原版一模一样办理学位证(UQ文凭证书)昆士兰大学毕业证成绩单原版一模一样
办理学位证(UQ文凭证书)昆士兰大学毕业证成绩单原版一模一样
 
React Server Component in Next.js by Hanief Utama
React Server Component in Next.js by Hanief UtamaReact Server Component in Next.js by Hanief Utama
React Server Component in Next.js by Hanief Utama
 
Software Project Health Check: Best Practices and Techniques for Your Product...
Software Project Health Check: Best Practices and Techniques for Your Product...Software Project Health Check: Best Practices and Techniques for Your Product...
Software Project Health Check: Best Practices and Techniques for Your Product...
 
Ahmed Motair CV April 2024 (Senior SW Developer)
Ahmed Motair CV April 2024 (Senior SW Developer)Ahmed Motair CV April 2024 (Senior SW Developer)
Ahmed Motair CV April 2024 (Senior SW Developer)
 
SuccessFactors 1H 2024 Release - Sneak-Peek by Deloitte Germany
SuccessFactors 1H 2024 Release - Sneak-Peek by Deloitte GermanySuccessFactors 1H 2024 Release - Sneak-Peek by Deloitte Germany
SuccessFactors 1H 2024 Release - Sneak-Peek by Deloitte Germany
 
KnowAPIs-UnknownPerf-jaxMainz-2024 (1).pptx
KnowAPIs-UnknownPerf-jaxMainz-2024 (1).pptxKnowAPIs-UnknownPerf-jaxMainz-2024 (1).pptx
KnowAPIs-UnknownPerf-jaxMainz-2024 (1).pptx
 
Implementing Zero Trust strategy with Azure
Implementing Zero Trust strategy with AzureImplementing Zero Trust strategy with Azure
Implementing Zero Trust strategy with Azure
 
Odoo 14 - eLearning Module In Odoo 14 Enterprise
Odoo 14 - eLearning Module In Odoo 14 EnterpriseOdoo 14 - eLearning Module In Odoo 14 Enterprise
Odoo 14 - eLearning Module In Odoo 14 Enterprise
 
Dealing with Cultural Dispersion — Stefano Lambiase — ICSE-SEIS 2024
Dealing with Cultural Dispersion — Stefano Lambiase — ICSE-SEIS 2024Dealing with Cultural Dispersion — Stefano Lambiase — ICSE-SEIS 2024
Dealing with Cultural Dispersion — Stefano Lambiase — ICSE-SEIS 2024
 
How to submit a standout Adobe Champion Application
How to submit a standout Adobe Champion ApplicationHow to submit a standout Adobe Champion Application
How to submit a standout Adobe Champion Application
 
Best Web Development Agency- Idiosys USA.pdf
Best Web Development Agency- Idiosys USA.pdfBest Web Development Agency- Idiosys USA.pdf
Best Web Development Agency- Idiosys USA.pdf
 
Balasore Best It Company|| Top 10 IT Company || Balasore Software company Odisha
Balasore Best It Company|| Top 10 IT Company || Balasore Software company OdishaBalasore Best It Company|| Top 10 IT Company || Balasore Software company Odisha
Balasore Best It Company|| Top 10 IT Company || Balasore Software company Odisha
 
Building a General PDE Solving Framework with Symbolic-Numeric Scientific Mac...
Building a General PDE Solving Framework with Symbolic-Numeric Scientific Mac...Building a General PDE Solving Framework with Symbolic-Numeric Scientific Mac...
Building a General PDE Solving Framework with Symbolic-Numeric Scientific Mac...
 
BATTLEFIELD ORM: TIPS, TACTICS AND STRATEGIES FOR CONQUERING YOUR DATABASE
BATTLEFIELD ORM: TIPS, TACTICS AND STRATEGIES FOR CONQUERING YOUR DATABASEBATTLEFIELD ORM: TIPS, TACTICS AND STRATEGIES FOR CONQUERING YOUR DATABASE
BATTLEFIELD ORM: TIPS, TACTICS AND STRATEGIES FOR CONQUERING YOUR DATABASE
 
Advantages of Odoo ERP 17 for Your Business
Advantages of Odoo ERP 17 for Your BusinessAdvantages of Odoo ERP 17 for Your Business
Advantages of Odoo ERP 17 for Your Business
 

What is FP Growth Analysis and How Can a Business Use Frequent Pattern Mining to Analyze Data?

  • 1. Master the Art of Analytics A Simplistic Explainer Series For Citizen Data Scientists J o u r n e y To w a r d s A u g m e n t e d A n a l y t i c s
  • 3. Introduction Basic terminologies with example Standard input/tuning parameters & Sample UI Sample output UI Interpretation of Output Limitations Business use cases What Are All Covered
  • 4. INTRODUCTION  Association rule mining is a procedure which finds frequent patterns, associations, or causal structures from data sets found in various kinds of databases such as relational databases, transactional databases, and other forms of data repositories  Given a set of transactions, association rule mining aims to find the rules which enable us to predict the occurrence of a specific item based on the occurrences of the other items in the transaction
  • 5. BASIC TERMINOLOGIES • ANTECEDENT: • Left hand side of the rule is called Antecedent • For instance, for the rule milk->bread, milk is antecedent • CONSEQUENT: • Right hand side of the rule is called Consequent • For instance, for the rule milk->bread, bread is consequent • SUPPORT : • The support of a rule x -> y (where x and y are each items/events etc.) is defined as the proportion of transactions in the data set which contain the item set x as well as y • Thus, Support (x -> y)= no. of transactions which contain the item set x & y / total no. of transactions •
  • 6. BASIC TERMINOLOGIES • CONFIDENCE : • The confidence of a rule x -> y is defined as: • Support ( x -> y ) / support (x) • Thus it is the ratio of the number of transactions that include all items in the consequent (y in this case), as well as the antecedent( x in this case) to the number of transactions that include all items in the antecedent ( x in this case ) • LIFT : • The lift of a rule x -> y is defined as: • Support ( x -> y ) / support (x) * support (y)
  • 7. Here , support (Milk -> Bread): = Number of transactions containing milk & bread / total transactions = 2/5 = 0.4 TID Milk Bread Butter Beer 1 1 0 1 1 2 1 1 1 0 3 0 1 1 0 4 1 0 0 1 5 1 1 1 1 Confidence (Milk -> Bread): = support (milk-> bread)/ support(milk) = 0.4/ [4/5] =0.4/ 0.8 =0.5 Lift (Milk -> Bread): = support (milk-> bread)/ support(milk) * support(bread) = 0.4/ [(4/5) * (3/5)] =0.4/ [0.8*0.6] = 0.4/0.48 =0.83  Support (milk->bread) = 0.4 means milk & bread together occur in 40% of all transactions  Confidence (milk->bread) = 0.5 means, if there are 100 transactions containing milk then there are 50 of them containing bread also Example
  • 8. Example Similarly , support, confidence and lift values of all item combinations are found and the rules matching user defined threshold of support and confidence will be displayed in final output as shown below : For instance, for minimum support = 0.3 and minimum confidence =0.3, sample rules generated would be as shown below , depicting frequent item sets or best performing combination of item sets Rule Support Confidence Lift Bread->Butter 0.5 0.6 0.86 Milk -> Bread 0.4 0.5 0.83 Milk -> Butter 0.3 0.5 0.78 Bread-> Beer 0.3 0.4 0.68
  • 9. INTERPRETATION : Example Rule Support Confidence Lift Bread->Butter 0.5 0.6 0.86 Milk -> Bread 0.4 0.5 0.83 Milk -> Butter 0.3 0.5 0.78 Bread-> Beer 0.3 0.4 0.68 • In this case, Bread -> Butter rule has highest propensity to be bought together as it has highest support as well as confidence, followed by Milk -> Bread, Milk -> Butter and Bread -> Beer • As support (Bread-> Butter ) = 0.5, there are 50% transactions containing bread and butter • As confidence (Bread-> Butter ) = 0.6 , if there are 100 transactions containing bread then there are 60 of them containing butter also • A lift larger than 1.0 implies that the relationship between the antecedent and the consequent is more significant than would be expected if the two were independent. The larger the lift, the more significant the association
  • 11. Standard Output 1 : Model Summary Rules that have both high confidence and support are called strong rules Even if confidence reaches high values, the rule is not useful unless the support value is high as well In this case, Bread -> Butter rule has highest propensity to be bought together as it has highest support as well as confidence, followed by Milk -> Bread, Milk -> Butter and Bread -> Beer There are 50% transactions containing break and butter, and if there are 100 transactions containing bread, 60 of them also has butter INTERPRETATION : Rule Support Confidence Lift Shampoo -> Soap 0.5 0.5 0.86 Cold drink -> Snacks 0.4 0.4 0.83 Fruit -> Vegetables 0.3 0.35 0.78 Milk > Egg 0.3 0.30 0.68
  • 12. INTERPRETATION : Sample Output 2 : Plot : Confidence By Rules The confidence value of each rule is shown in the plot above As confidence value takes into account the sequence of items in the association rule, this plot is built based on confidence values instead of support or lift The product combinations shown in dark green color in plot above have the highest likelihood to be bought together and in sequence Darker the color, more the likelihood of products being bought together and sequentially
  • 13. Sample Output 2: Plot : Support & confidence by rule • Ideally both support and confidence should be taken into account to come up with best rules because support only indicates the frequency of both items being sold together where as confidence takes care of sequence of purchase also • Hence, alternatively , a bubble scatter plot using support and confidence measures can be used to focus on rules with high support as well as confidence
  • 14. LIMITATIONS :  Processing time for running this algorithm is relatively high when compared to other algorithms due to millions of transaction level data in input  The user must possess a certain amount of expertise in order to find the right settings for support and confidence to obtain the best association rules
  • 15. GENERAL APPLICATIONS • BASKET DATA ANALYSIS • To analyze the association of purchased items in a single basket or single purchase • CROSS MARKETING/SELLING • To work with other businesses that complement your own, not competitors. • For example, vehicle dealerships and manufacturers have cross marketing campaigns with oil and gas companies for obvious reasons • CATALOG DESIGN • The selection of items in a business’ catalog are often designed to complement each other so that buying one item will lead to buying of another. So these items are often complements or very related • MEDICAL TREATMENTS • Each patient is represented as a transaction containing the ordered set of diseases and which diseases are likely to occur simultaneously / sequentially can be predicted
  • 16. USE CASE 1 Business benefit: • Based on the association rules generated, the store manager will be able to strategically place the products together or in sequence leading to growth in sales and in turn revenue of the store • Offers such as “Buy this and get this free” or “Buy this and get %off on this” can be designed based on the association rules generated Business problem : • A retail store manager wants to conduct Market Basket analysis to come up with better strategy of products placement and product bundling
  • 17. Use case 1 : Sample Input Dataset Transaction ID Product 1 Product 2 Product 3 1039153 Milk Bread Jam 1069697 Shampoo Soap Tooth paste 1068120 Cold drink Snacks Ear ring 563175 Hand wash Antiseptic liquid Hand sanitizer 562842 Fruit Vegetables Ketchup 562681 Cold drink Snacks Ear ring 562404 Shampoo Soap - 700159 Bread Jam - 696484 Milk Fruit Vegetables
  • 18. Use Case 1 : Sample Output 1 : Association Rules Rule Support Confidence Lift Shampoo -> Soap 0.5 0.6 0.86 Cold drink -> Snacks 0.4 0.5 0.83 Fruits -> Vegetables 0.3 0.5 0.78 Bread -> Jam 0.3 0.3 0.67 Output : Based on the threshold set by user or automatically selected by algorithm, the best product combinations will show up in the form of association rules, along with their support, confidence and lift values as shown below :
  • 19. Use Case 1 : Sample Output 2: Plot : Confidence By Rule • Based on the association rules generated, the heat map plot can be shown as above , indicating rules having high confidence or support with darker shade of a particular color and those having lower support or confidence values with lighter shade of a same color • End user can simply focus on the rules shown in dark color to come up with better product bundling or placement in order to increase the cross sell
  • 20. Use case 2 Business benefit: • Based on the rules generated, banking products can be cross sold to each existing or prospective customer to drive sales and bank revenue • For instance, if saving ,personal loan and credit card are frequently sequentially bought then a new saving account customer can be cross sold with personal loan and credit card Business problem : • A bank marketing manager may want to analyze which products are frequently and sequentially bought together • Each customer is represented as a transaction containing the ordered set of products and which products are likely to be purchased simultaneously / sequentially can be predicted
  • 21. Use case 3 Business problem : •A telecom marketing manager may want to analyze which value added services are frequently and sequentially bought together •Each customer is represented as a transaction containing the ordered set of value added services and which services are likely to be purchased simultaneously / sequentially can be predicted Business benefit: •Based on the rules generated, value added services can be cross sold to each existing or prospective customer to drive sales and revenue of a telecom service provider •For instance, if a group calling sim, 1 GB internet plan and 500 minutes plan is generally opted out plan by most of the customers than whenever a new prospective customer comes in for group calling sim card, then he or she can be targeted with 1 GB internet plan and 500 minutes plan
  • 22. Want to Learn More? Get in touch with us @ support@Smarten.com And Do Checkout the Learning section on Smarten.com June 2018