Association rule mining is used to find relationships between items in transaction data. It identifies rules that can predict the occurrence of an item based on other items purchased together frequently. Some key metrics used to evaluate rules include support, which measures how frequently an itemset occurs; confidence, which measures how often items in the predicted set occur given items in the predictor set; and lift, which compares the confidence to expected confidence if items were independent. An example association rule evaluated is {Milk, Diaper} -> {Beer} with support of 0.4, confidence of 0.67, and lift of 1.11.