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Describe some of the purposes for doing a data mining? Provide some advantages of Data
mining with relevant examples
Solution
Data mining is a powerful new technology with great potential to help companies focus on the
most important information in the data they have collected about the behavior of their customers
and potential customers. It discovers information within the data that queries and reports can't
effectively reveal.Data mining, or knowledge discovery, is the computer-assisted process of
digging through and analyzing enormous sets of data and then extracting the meaning of the data.
Data mining tools predict behaviors and future trends, allowing businesses to make proactive,
knowledge-driven decisions. Data mining tools can answer business questions that traditionally
were too time consuming to resolve. They scour databases for hidden patterns, finding predictive
information that experts may miss because it lies outside their expectations
The Advantage of data minning are as follows:
(a) It is used to discover patterns and relationships in the data in order to help make better
business decisions.
(b) It can help spot sales trends.
(c) It develop smarter marketing campaigns, and accurately predict customer loyalty.
(d) Using massively parallel computers, companies dig through volumes of data to discover
patterns about their customers and products.For example, grocery chains have found that when
men go to a supermarket to buy diapers, they sometimes walk out with a six-pack of beer as
well.AT&T, A.C. Nielson, and American Express are among the growing ranks of companies
implementing data mining techniques for sales and marketing. These systems are crunching
through terabytes of point-of-sale data to aid analysts in understanding consumer behavior and
promotional strategiesSimilarly, financial analysts are plowing through vast sets of financial
records, data feeds, and other information sources in order to make investment decisions. Health-
care organizations are examining medical records to understand trends of the past so they can
reduce costs in the future.

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Describe some of the purposes for doing a data mining Provide some .pdf

  • 1. Describe some of the purposes for doing a data mining? Provide some advantages of Data mining with relevant examples Solution Data mining is a powerful new technology with great potential to help companies focus on the most important information in the data they have collected about the behavior of their customers and potential customers. It discovers information within the data that queries and reports can't effectively reveal.Data mining, or knowledge discovery, is the computer-assisted process of digging through and analyzing enormous sets of data and then extracting the meaning of the data. Data mining tools predict behaviors and future trends, allowing businesses to make proactive, knowledge-driven decisions. Data mining tools can answer business questions that traditionally were too time consuming to resolve. They scour databases for hidden patterns, finding predictive information that experts may miss because it lies outside their expectations The Advantage of data minning are as follows: (a) It is used to discover patterns and relationships in the data in order to help make better business decisions. (b) It can help spot sales trends. (c) It develop smarter marketing campaigns, and accurately predict customer loyalty. (d) Using massively parallel computers, companies dig through volumes of data to discover patterns about their customers and products.For example, grocery chains have found that when men go to a supermarket to buy diapers, they sometimes walk out with a six-pack of beer as well.AT&T, A.C. Nielson, and American Express are among the growing ranks of companies implementing data mining techniques for sales and marketing. These systems are crunching through terabytes of point-of-sale data to aid analysts in understanding consumer behavior and promotional strategiesSimilarly, financial analysts are plowing through vast sets of financial records, data feeds, and other information sources in order to make investment decisions. Health- care organizations are examining medical records to understand trends of the past so they can reduce costs in the future.