Focus the mining beacon: lessons and challenges


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  • When you listen to anyone giving advice and lessons, you should ask “what experience does the speaker have?” E-commerce, and more generally web applications, are a “killer” domain For lessons and challenges, I’ll skip the ones you learn in intro to knowledge discovery, such as 80% of the time is spent in data preparation This talk gives a taste for some key lessons and challenges. The ML paper is much more detailed.
  • My goal in giving you these background slides is to tell you about my experiences so that you know I’m not shaving on your face. MLC++: provided algorithms for comparisons that others used like discretization.
  • Clients including including Bluefly, Canadian Tire, Debenhams, Harley Davidson, Gymboree, Kohl’s, Mountain Equipment Co-op, Saks Fifth Avenue, Sainsbury, Sprint, The Men’s Wearhouse At Blue Martini, people wanted us to tell them the time, not how to build clocks. This is the opposite of “built to last” by Collins and Porras. Most companies wanted to sell, not to build core competencies in data mining. They were interested in key insights, especially in the early days of going live.
  • In many cases organizations that own the operations and the analysis don’t create such an automated process.
  • People filled in search keywords into the e-mail box that says “sign up for e-mail.” Easy to fix. BTW, search has to be on the home page. Amazon also made this mistake when it went live: there was no search box on the home page.
  • Top-5 taken 9/24/05 at 23:10 PST Sales rank: You get a near-real-time (updated hourly) metric that is not clearly defined to the outside observer!
  • Sunglasses example You tell someone that there’s a big difference in sales of sunglasses per-capita between Seattle and LA. They say, well that’s obvious, you guys up in Seattle never need sunglasses since it’s so cloudy. You then state that Seattle sells more sunglasses per capita than LA (a true fact) They looked surprised, when you can see how their neural net in their brain is updating its weights with this surprising info, but then after 10 seconds they say “well, that’s obvious. It’s so cloudy there, that when the sun comes out, you need sunglasses and don’t know where you left them, so you buy another pair.”
  • Oh my God, what’s wrong with this child? NOTHING. He’s sound asleep with no teeth
  • Closed space between top "Proceed to Checkout" button line and next line. Removed top "Continue Shopping" button. Removed "Update" button underneath the quantity box. Moved "Total" box down a line. Text and amount appear in different boxes. Above the "Total" box is a "Discount" box, with amount in a box next to it. Above "Shipping Method" line is "Enter Coupon Code" with a box to enter it. New "Recalculate" button left of "Continue Shopping." Bottom tool bar on two lines. Shopping cart icon one space closer to the words "Shopping Cart."
  • Sadly, the 5-stars was launched as an attempt to improve yes/no.
  • For Oct 29, 2006 it’s both Europe and the US. For starting DST, the dates are different. Don’t forget to change your batteries: More than 90 percent of homes in the United States have smoke detectors, but one-third are estimated to have dead or missing batteries.
  • Skip slide
  • For cities, treatment A was better in each city, but lost overall Small Stones Large Stones Total Treatment A 81/ 87 = 93% 192/263 = 73% 273/350 = 78% Treatment B 234/270 = 87% 55/ 80 = 69% 289/350 = 83%
  • Good example of primacy: Office 2007 vs. Office 2003
  • Tank example
  • [Some people bought fairly expensive products for less than 5 cents. Note this is an example of a multi-variate anomaly. It is OK for some products (e.g. gum) to be 5 cents, but not for other products. 2 6 different ways of spelling Mitsubishi!. Use drop down lists instead of free text fields]
  • Explain the heatmap. Note that Friday’s are generally weaker. The next version of office (office 2007) has heatmaps.
  • Naïve-Bayes: -- Stay on the last picture and see that - What your mother told you about education is true: higher education implies higher salary - Note politically correct, but nonetheless true in this census bureau data, being male slightly increases your chance of earning more money.
  • This isn’t in the paper, but too many people aren’t aware of this and I keep seeing this mistake made. Even with large amounts of data, model will split it into segments and some will be small enough so that it matters.
  • Focus the mining beacon: lessons and challenges

    1. 1. Focus the Mining Beacon: Lessons and Challenges from the World of E-Commerce SF Bay ACM Data Mining SIG, 6/13/2006
    2. 2. Overview <ul><li>Background/experience </li></ul><ul><li>Business lessons and Controlled Experiments </li></ul><ul><li>Simpson’s paradox </li></ul><ul><li>Technical lessons </li></ul><ul><li>Challenges </li></ul><ul><li>Q&A </li></ul>
    3. 3. Background (I) <ul><li>1993-1995: Led development of MLC++, the Machine Learning Library in C++ (Stanford University) </li></ul><ul><ul><li>Implemented or interfaced many ML algorithms. Source code is public domain, used for algorithm comparisons </li></ul></ul><ul><li>1995-1998: Developed and managed MineSet </li></ul><ul><ul><li>MineSet ™ was a “horizontal” data mining and visualization product at Silicon Graphics, Inc (SGI). Utilized MLC++. Now owned by Purple Insight </li></ul></ul><ul><ul><li>Key insight: customers want simple stuff: Naïve Bayes + Viz </li></ul></ul><ul><li>ICML 1998 keynote: claimed that to be successful, data mining needs to be part of a complete solution in a vertical market </li></ul><ul><ul><li>I followed this vision to Blue Martini Software </li></ul></ul><ul><li>A consultant is someone who </li></ul><ul><ul><li>borrows your razor, </li></ul></ul><ul><ul><li>charges you by the hour, </li></ul></ul><ul><ul><li>learns to shave </li></ul></ul><ul><li>on your face </li></ul>
    4. 4. Background (II) <ul><li>1998-2003: Director of Data Mining, then VP of Business Intelligence at Blue Martini Software </li></ul><ul><ul><li>Developed end-to-end e-commerce platform with integrated business intelligence from collection, extract-transform-load (ETL) to data warehouse, reporting, mining, visualizations </li></ul></ul><ul><ul><li>Analyzed data from over 20 clients </li></ul></ul><ul><ul><li>Key insight: collection, ETL worked great. Found many insights. However, customers mostly just ran the reports/analyses we provided </li></ul></ul><ul><li>2003-2005: Director, Data Mining and Personalization, Amazon </li></ul><ul><ul><li>Key insights: (i) simple things work, and (ii) human insight is key </li></ul></ul><ul><li>2005: Microsoft </li></ul><ul><ul><li>Assistance Platform </li></ul></ul><ul><ul><li>Started Experimentation Platform group 3/2006 </li></ul></ul>
    5. 5. Business-level Lessons (I) <ul><li>Auto-creation of the data warehouse worked very well </li></ul><ul><ul><li>At Blue Martini we owned the operational side as well as the analysis, we had a ‘DSSGen’ process that auto-generated a star-schema data warehouse </li></ul></ul><ul><ul><li>This worked very well. For example, if a new customer attribute was added at the operational side, it automatically became available in the data warehouse </li></ul></ul><ul><li>Clients are reluctant to list specific questions </li></ul><ul><ul><li>Conduct an interim meeting with basic findings. Clients often came up with a long list of questions faced with basic statistics about their data </li></ul></ul>
    6. 6. Business-level Lessons (II) <ul><li>Collect business-level data from operational side </li></ul><ul><ul><li>Many things not observable in weblogs (search information, shopping cart events, registration forms, time to return results). Log more at app-server </li></ul></ul><ul><ul><li>External events: marketing promotions, advertisements, site changes </li></ul></ul><ul><ul><li>Choose to collect as much data as you realistically can because you do not know what might be relevant for a future question. (Subject to privacy issues, but aggregated/anonymous data is usually OK.) </li></ul></ul>
    7. 7. Collection example – Form Errors Here is a good example of data collection that we introduced without knowing apriori whether it will help: form errors If a web form was filled and a field did not pass validation, we logged the field and value filled This was the Bluefly home page when they went live Looking at form errors, we saw thousands of errors every day on this page Any guesses?
    8. 8. Business-level Lessons (III) <ul><li>Crawl, Walk, Run </li></ul><ul><ul><li>Do basic reporting first, generate univariate statistics, then use OLAP for hypothesis testing, and only then start asking characterization questions and use data mining algorithms </li></ul></ul><ul><li>Agree on terminology </li></ul><ul><ul><li>What is the difference between a visit and a session? </li></ul></ul><ul><ul><li>How do you define a customer (e.g., did every customer purchase)? </li></ul></ul><ul><ul><li>How is “top seller” defined when showing best sellers? Why are lists from Amazon (left) and Barnes Noble (right) so different? The answer: no agreed-upon definition of sales rank. </li></ul></ul>
    9. 9. Human Intuition is Poor <ul><li>Many explanations we give to “success” are backwards looking. Hindsight is 20/20 </li></ul><ul><ul><li>Sales of sunglasses per-capita in Seattle vs. LA example </li></ul></ul><ul><li>Our intuition at assessing new ideas is usually very poor </li></ul><ul><ul><li>We are especially bad at assessing ideas that are not incremental, i.e., radical changes </li></ul></ul><ul><ul><li>We commonly confuse ourselves with the target audience </li></ul></ul><ul><ul><li>Discoveries that contradict our prior thinking are usually the most interesting </li></ul></ul><ul><li>Next set of slides are a series of examples where you can test your intuition, or your “prior probabilities.” </li></ul>Do you believe in intuition? No, but I have a feeling I might someday
    10. 10. We tend to interpret the picture to the left as a serious problem How Priors Fail us Warning: graphic image may be disturbing to some people. However, it’s just your priors.
    11. 11. We are not Used to Seeing Pacifiers with Teeth
    12. 12. Checkout Page Example from Bryan Eisenberg’s article on The conversion rate is the percentage of visits to the website that include a purchase Which version has a higher conversion rate? Why? A B
    13. 13. Graphics / Color <ul><li>Which one converts (to search) better? </li></ul>A B Source: Marketing Experiments http://
    14. 14. Amazon Shopping Cart Recs <ul><li>Add an item to your shopping cart at a website </li></ul><ul><li>Most sites show the cart </li></ul><ul><li>At Amazon, Greg Linden had the idea of showing recommendations based on cart items </li></ul><ul><li>Evaluation </li></ul><ul><ul><li>Pro: cross-sell more items </li></ul></ul><ul><ul><li>Con: distract people from checking out – VP asked to stop work on this idea </li></ul></ul><ul><ul><li>As with many new things, hard to decide </li></ul></ul><ul><li>A/B test was run </li></ul>From Greg Linden’s Blog: Idea was great. As many of you know from experience, this feature is live on the site
    15. 15. Office Online <ul><li>Small UI changes can make a big difference </li></ul><ul><li>Example from Microsoft Help </li></ul><ul><li>When reading help (from product or web), you have an option to give feedback </li></ul>
    16. 16. Office Online Feedback A B Feedback A puts everything together, whereas feedback B is two-stage: question follows rating. Feedback A just has 5 stars, whereas B annotates the stars with “Not helpful” to “Very helpful” and makes them lighter Which one has a higher response rate? By how much?
    17. 17. Another Feedback Variant <ul><li>Call this variant C. Like B, also two stage. </li></ul><ul><li>Which one has a higher response rate, B or C? </li></ul>C
    18. 18. Twyman’s Law <ul><li>Any statistic that appears interesting is almost certainly a mistake </li></ul><ul><li>Validate “amazing” discoveries in different ways. They are usually the result of a business process </li></ul><ul><ul><li>5% of customers were born on the exact same day (including year) </li></ul></ul><ul><ul><ul><li>11/11/11 is the easiest way to satisfy the mandatory birth date field </li></ul></ul></ul><ul><ul><li>For US and European Web sites, there will be a small sales increase on Oct 29 th , 2006 </li></ul></ul>
    19. 19. Twyman’s Law (II) <ul><li>KDD CUP 2000 </li></ul><ul><li>Customers who were willing to receive e-mail correlated with heavy spenders (target variable) </li></ul><ul><ul><ul><li>Default for registration question was changed from “yes” to “no” on 2/28 </li></ul></ul></ul><ul><ul><ul><li>When it was realized that few were opting-in, the default was changed </li></ul></ul></ul><ul><ul><ul><li>This coincided with a $10 discount off every purchase </li></ul></ul></ul><ul><ul><ul><li>Lots of participants found this spurious correlation, but it was terrible for predictions on the test set </li></ul></ul></ul><ul><li>Sites go through phases (launches) and multiple things change together </li></ul>
    20. 20. Interrupt: Key Takeaways <ul><li>Every talk (hopefully) has a few key points to take away. Here are two from this talk: </li></ul><ul><ul><li>Encourage controlled experiments (A/B tests) </li></ul></ul><ul><ul><ul><li>The previous examples should have convinced you that our intuition is poor and we need to experiment to get data </li></ul></ul></ul><ul><ul><li>Simpson’s paradox </li></ul></ul><ul><ul><ul><li>Lack of awareness of the phenomenon can lead to mistaken conclusions </li></ul></ul></ul><ul><ul><ul><li>Unlike esoteric brain teasers, it happens in real life </li></ul></ul></ul><ul><ul><ul><li>In the next few slides I’ll share examples that seem “impossible” </li></ul></ul></ul><ul><ul><ul><li>We’ll then explain why they are possible and do happen </li></ul></ul></ul><ul><ul><ul><li>Discuss implications/warning </li></ul></ul></ul>
    21. 21. Examples 1: Drug Treatment <ul><li>Real-life example for kidney stone treatments </li></ul><ul><li>Overall success rates: </li></ul><ul><ul><li>Treatment A succeeded 78%, Treatment B succeeded 83% (better) </li></ul></ul><ul><li>Further analysis splits the population by stone size </li></ul><ul><ul><li>For small stones </li></ul></ul><ul><ul><ul><li>Treatment A succeeded 93% (better), Treatment B succeeded 83% </li></ul></ul></ul><ul><ul><li>For large stones </li></ul></ul><ul><ul><ul><li>Treatment A succeeded 73% (better), Treatment B succeeded 69% </li></ul></ul></ul><ul><ul><li>Hence treatment A is better in both cases, yet was worse in total </li></ul></ul><ul><li>People going into treatment have either small stones or large stones </li></ul><ul><li>A similar real-life example happened when the two populations segments were cities (A was better in each city, but worse overall) </li></ul>Adopted from wikipedia/simpson’s paradox
    22. 22. Example 2: Sex Bias? <ul><li>Adopted from real data for UC Berkeley admissions </li></ul><ul><li>Women claimed sexual discrimination </li></ul><ul><ul><li>Only 34% of women were accepted, while 44% of men were accepted </li></ul></ul><ul><li>Segmenting by departments to isolate the bias, they found that all departments accept a higher percentage of women applicants than men applicants. (If anything, there is a slight bias in favor of women!) </li></ul><ul><li>There is no conflict in the above statements. It’s possible and it happened </li></ul>Bickel, P. J., Hammel, E. A., and O'Connell, J. W. (1975). Sex bias in graduate admissions: Data from Berkeley. Science , 187, 1975, 398-404.
    23. 23. Example 3: Purchase Channels <ul><li>Real example from a Blue Martini Customer </li></ul><ul><li>We plotted the average customer spending for customers purchasing on the web or “on the web and offline (POS)” (multi-channel), but segmented by number of purchases per customer </li></ul><ul><li>In all segments, multi-channel customers spent less </li></ul><ul><li>However, like predicted, ignoring the segments, multi-channel customers spent more on average </li></ul>Multichannel customers spend 72% more per year than single channel customers -- State of Retailing Online,
    24. 24. Last Example: Batting Average <ul><li>Baseball example </li></ul><ul><ul><li>(For those not familiar with baseball, batting average is percent of hits.) </li></ul></ul><ul><ul><li>One player can hit for a higher batting average than another player during the first half of the year </li></ul></ul><ul><ul><li>Do so again during the second half </li></ul></ul><ul><ul><li>But to have a lower batting average for the entire year </li></ul></ul><ul><li>Example </li></ul><ul><li>Key to the “paradox” is that the segmenting variable (e.g., half year) interacts with “success” and with the counts. E.g., “A” was sick and rarely played in the 1 st half, then “B” was sick in the 2 nd half, but the 1 st half was “easier” overall. </li></ul>
    25. 25. Not Really a Paradox, Yet Non-Intuitive <ul><li>If a/b < A/B and c/d < C/D, it’s possible that (a+c)/(b+d) > (A+C)/(B+D) </li></ul><ul><li>We are essentially dealing with weighted averages when we combine segments </li></ul><ul><li>Here is a simple example with two treatments </li></ul><ul><ul><li>Each cell has Success / Total = Percent Success % </li></ul></ul><ul><ul><li>T1 is superior in both segment C1 and segment C2, yet loses overall </li></ul></ul><ul><ul><li>C1 is “harder” (lower success for both treatments) </li></ul></ul><ul><ul><li>T1 gets tested more in C1 </li></ul></ul>
    26. 26. Important, not Just Cool <ul><li>Why is this so important? </li></ul><ul><li>In knowledge discovery, we state probabilities (correlations) and associate them with causality </li></ul><ul><ul><li>Treatment T1 works better </li></ul></ul><ul><ul><li>Berkeley discriminates against women </li></ul></ul><ul><li>We must be careful to check for confounding variables </li></ul><ul><li>Confounding variables may not be ones we are collecting (e.g., latent/hidden) </li></ul>
    27. 27. Controlled Experiments <ul><li>Multiple names to the same concept </li></ul><ul><ul><li>A/B tests </li></ul></ul><ul><ul><li>Control/Treatment </li></ul></ul><ul><ul><li>Controlled experiments </li></ul></ul><ul><ul><li>Randomized Experimental Design </li></ul></ul><ul><li>Concept is trivial </li></ul><ul><ul><li>Randomly split traffic between two versions </li></ul></ul><ul><ul><ul><li>Control: usually current live version </li></ul></ul></ul><ul><ul><ul><li>Treatment: new idea (or multiple) </li></ul></ul></ul><ul><ul><li>Collect metrics of interest, analyze (statistical tests, data mining) </li></ul></ul><ul><li>First known controlled experiment in the 1700s </li></ul><ul><ul><li>British captain noticed lack of scurvy in Mediterranean ships </li></ul></ul><ul><ul><li>Had half the sailors eat limes (treatment), half did not (control) </li></ul></ul><ul><ul><li>Experiment was so successful, British sailors are still called limeys </li></ul></ul><ul><ul><li>Note: success despite no understanding of vitamin C deficiency </li></ul></ul>
    28. 28. Advantages of Controlled Experiments <ul><li>Controlled experiments test for causal relationships, not simply correlations </li></ul><ul><li>They insulate external factors </li></ul><ul><ul><li>Problems that plague interrupted time series, such as history/seasonality/regression impact both versions </li></ul></ul><ul><li>They are the standard in FDA drug tests </li></ul><ul><li>But like most great things, there are problems and it’s important to recognize them… </li></ul>
    29. 29. Issues with Controlled Experiments (1 of 4) <ul><li>Org has to agree on key metric(s) to improve </li></ul><ul><ul><li>While it may seem obvious that we need to know if we’re improving, it’s not easy to get clear agreement </li></ul></ul><ul><ul><li>If nothing else, bringing this question to the surface is a great benefit to the org! </li></ul></ul>If you don't know where you are going, any road will take you there — Lewis Carroll
    30. 30. Issues with Controlled Experiments (2 of 4) <ul><li>Quantitative metrics, not always explanations of “why” </li></ul><ul><ul><li>For example, we may know that lemons work against scurvy, but not why; it may take a while to understand vitamin C deficiency </li></ul></ul><ul><ul><li>Data Mining may help identify segments where difference is large, leading to better understanding </li></ul></ul><ul><ul><li>Usability studies also useful at explaining </li></ul></ul><ul><li>Short-term vs. Long-term </li></ul><ul><ul><li>Hard to assess long term effects, such as customer abandonment </li></ul></ul><ul><ul><li>Example: if you optimize for ads for clickthrough revenues, you might plaster the site with ads. Long-term concerns should be part of metric (e.g., revenue per pixels of real estate on the window) </li></ul></ul>
    31. 31. Issues with Controlled Experiments (3 of 4) <ul><li>Primacy effect </li></ul><ul><ul><li>Changing navigation in a website may degrade the customer experience (temporarily), even if the new navigation is better </li></ul></ul><ul><ul><li>Evaluation may need to focus on new users, or run for a long period </li></ul></ul><ul><li>Multiple experiments </li></ul><ul><ul><li>Even though the methodology shields an experiment from other changes, statistical variance increases making it harder to get significant results </li></ul></ul><ul><ul><li>It is useful to avoid multiple changes to the same “area.” QA also becomes harder when tests interact </li></ul></ul><ul><li>Consistency/contamination </li></ul><ul><ul><li>On the web, assignment is usually cookie-based, but people may use multiple computers, erase cookies, etc. Typically a small issue </li></ul></ul><ul><li>Launch events / media announcements sometimes preclude controlled experiments </li></ul><ul><ul><li>The journalists need to be shown the “new” version </li></ul></ul>
    32. 32. <ul><li>Statistical tests: distributions are far from normal </li></ul><ul><ul><li>97% of sessions do not purchase, so there’s a large mass on the zero spending </li></ul></ul><ul><li>Proper randomization required </li></ul><ul><ul><li>You cannot run option A on day 1 and option B on day 2, you have to run them in parallel </li></ul></ul><ul><ul><li>When running in parallel, you cannot randomize based on IP (e.g., load-balancer randomization) because all of AOL traffic comes from a few proxy servers </li></ul></ul><ul><ul><li>Every customer must have an equal chance of falling into control or treatment and must stick to that group </li></ul></ul>Issues with Controlled Experiments (4 of 4)
    33. 33. Technical Lessons – Cleansing (I) <ul><li>Auditing data </li></ul><ul><ul><li>Make sure time-series data exists for the whole period. It is very easy to conclude that this week was bad relative to last week because some data is missing (e.g., collection bug) </li></ul></ul><ul><ul><li>Synchronize clocks from all data collection points. In one example, some servers were set to GMT and others to EST, leading to strange anomalies. Even being a few minutes off can cause add-to-carts to appear “prior” to the search </li></ul></ul>
    34. 34. Technical Lessons – Cleansing (II) <ul><li>Auditing data (continued) </li></ul><ul><ul><li>Remove test data. QA organizations constantly test the system. Make sure the data can be identified and removed from analysis </li></ul></ul><ul><ul><li>Remove robots/bots/spiders 5-40% of site e-commerce site traffic is generated by crawlers from search engines and students learning Perl. These significantly skew results unless removed </li></ul></ul>
    35. 35. Data Processing <ul><li>Utilize hierarchies </li></ul><ul><ul><li>Generalizations are hard to find when there are many attribute values (e.g., every product has a Stock Keeping Unit number) </li></ul></ul><ul><ul><li>Collapse such attribute values based on hierarchies </li></ul></ul><ul><li>Remember date/time attributes </li></ul><ul><ul><li>Date/time attributes are often ignored, but contain information </li></ul></ul><ul><ul><li>Convert them into cyclical attributes, such as hour of day or morning/afternoon/evening, day of week, etc. </li></ul></ul><ul><ul><li>Compute deltas between such attributes (e.g., ship date minus order date) </li></ul></ul>
    36. 36. Analysis / Model Building <ul><li>Mining at the right granularity level </li></ul><ul><ul><li>To answer questions about customers, we must aggregate clickstreams, purchases, and other information to the customer level </li></ul></ul><ul><ul><li>Defining the right transformation and creating summary attributes is the key to success </li></ul></ul><ul><li>Phrase the problem to avoid leaks </li></ul><ul><ul><li>A leak is an attribute that “gives away” the label. E.g., heavy spenders pay more sales tax (VAT) </li></ul></ul><ul><ul><li>Phrasing the problem to avoid leaks is a key insight. Instead of asking who is a heavy spender, ask which customers migrate from spending a small amount in period 1 to a large amount in period 2 </li></ul></ul>
    37. 37. Data Visualizations <ul><li>Picking the right visualization is key to seeing patterns </li></ul><ul><ul><li>On the left is traffic by day – note the weekends (but hard to see patterns) </li></ul></ul><ul><ul><li>On the right is a heatmap, showing traffic colored from green to yellow to red utilizing the cyclical nature of the week (going up in columns) It’s easy to see the weekend, Labor day on Sept 3, and the effect of Sept 11 </li></ul></ul>weekends
    38. 38. Model Visualizations <ul><li>When we build models for prediction, it is sometimes important to understand them </li></ul><ul><li>For MineSet™, we built visualizations for all models </li></ul><ul><li>Here is one: Naïve-Bayes / Evidence model (movie) </li></ul>
    39. 39. A Real Technical Lesson: Computing Confidence Intervals <ul><li>In many situations we need to compute confidence intervals, which are simply estimated as: acc_h +- z*stdDev </li></ul><ul><ul><li>where acc_h is the estimated mean accuracy, </li></ul></ul><ul><ul><li>stdDev is the estimated standard deviation, and </li></ul></ul><ul><ul><li>z is usually 1.96 for a 95% confidence interval) </li></ul></ul><ul><li>This fails miserably for small amounts of data </li></ul><ul><ul><li>For Example: If you see three coin tosses that are head, the confidence interval for the probability of head would be [1,1] </li></ul></ul><ul><li>Use a more accurate formula that does not require using stdDev (but still assumes Normality): </li></ul><ul><ul><li>It’s not used often because it’s more complex, but that’s what computers are for </li></ul></ul><ul><ul><li>See Kohavi, “A Study of Cross-Validation and Bootstrap for Accuracy Estimation and Model Selection” in IJCAI-95 </li></ul></ul>
    40. 40. Challenges (I) <ul><li>Finding a way to map business questions to data transformations </li></ul><ul><ul><li>Don Chamberlin wrote on the design of SQL “What we thought we were doing was making it possible for non-programmers to interact with databases.&quot; The SQL99 standard is now about 1,000 pages </li></ul></ul><ul><ul><li>Many operations that are needed for mining are not easy to write in SQL </li></ul></ul><ul><li>Explaining models to users </li></ul><ul><ul><li>What are ways to make models more comprehensible </li></ul></ul><ul><ul><li>How can association rules be visualized/summarized? </li></ul></ul>
    41. 41. Challenges (II) <ul><li>Dealing with “slowly changing dimensions” </li></ul><ul><ul><li>Customer attributes change (people get married, their children grow and we need to change recommendations) </li></ul></ul><ul><ul><li>Product attributes change, or are packaged differently. New editions of books come out </li></ul></ul><ul><li>Supporting hierarchical attributes </li></ul><ul><li>Deploying models </li></ul><ul><ul><li>Models are built based on constructed attributes in the data warehouse. Translating them back to attributes available at the operational side is an open problem </li></ul></ul><ul><li>For web sites, detecting bots/robots/spiders </li></ul><ul><ul><li>Detection is based on heuristics (useragent, IP, javascript) </li></ul></ul>
    42. 42. Challenges (III) <ul><li>Analyzing and measuring long-term impact of changes </li></ul><ul><ul><li>Control/Treatment experiments give us short-term value. How do we address long-term impact of changes? </li></ul></ul><ul><ul><li>For non-commerce sites, how do we measure user satisfaction? Example: users hit F1 for help in Microsoft Office and execute a series of queries, browsing through documents. How do we measure satisfaction other than through surveys? </li></ul></ul>
    43. 43. Summary <ul><li>The lessons and challenges are from e-commerce, but likely to be applicable in other domains </li></ul><ul><li>Think about the problem end-to-end from collection, transformations, reporting, visualizations, modeling, taking action </li></ul><ul><li>Beware of hidden variables when concluding causality. Think about Simpson’s paradox. </li></ul><ul><li>Conduct many controlled experiments (A/B tests) because our intuition is poor </li></ul><ul><ul><li>Build infrastructure for controlled experiments (this is what my team is now doing at Microsoft) </li></ul></ul>Copy of talk at