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Unformatted text preview: Frequent Recent Try to get this one back! Forget about this one! Business Intelligence Tools Business
– Assessment Data mining tools
– Statistical techniques – Find patterns and relationships – Predictions Unsupervised data mining Unsupervised
No model or hypothesis – exploratory
– Cluster analysis – identify groups with similar Cluster characteristics characteristics
Groups of similar customers Groups Beer Example Beer
Enter data on 20 kinds of beer
– Calories, sodium, alcohol, cost – 4 Clusters formed after analysis
Frat beer (low cost, high alcohol) Yuppie Imports (high cost, low calories) Light beer (low calories, low sodium) Water (low alcohol, calories, and sodium)
Source: Dr. Hancock, Multivariate Analysis Class, UMD, 2002 Computer User Example Computer
Variables entered were…
– # years using computer – Time per day on computer – Time per week on-line – Primary applications used – Resulted in 4 clusters… Source: www.marketstrategies.com Computer User Example Computer
Segment Gen X males Age 18-32 PC Usage 6+ yrs On-line 14 hrs/wk Applications • Entertainment • Work • Work Baby Boomer Workers Parent Trap 28-45 12+ yrs 6 hrs/wk 22-36 8 yrs 4 hrs/wk • Education • Entertainment • Entertainment Light Users 38-55 4 yrs or less 2 hrs/wk Source: www.marketstrategies.com Supervised Data Mining Supervised
Testing a hypothesis – confirmatory Regression Analysis to make predictions
– Wkndmin = 12+(17 x Age)+(24 x Acct) Market Basket Analysis Market Expert Systems/Decision Trees Expert
IF loan > ½ paid THEN accept loan IF loan accept IF loan < ½ paid AND… IF loan
– IF credit score > 570 THEN accept loan IF credit accept OTHERWISE reject loan OTHERWISE reject OR IF patient temp>103 THEN initiate high IF fever procedure fever Carbon Creek Gardens Carbon
What tool should Mary use to solve her What problem? problem? Business Intelligence (cont.) Business
Top company in BI: Business Objects Top Business
– (SAP purchased on Oct 7 for $6.8 billion) More appl...
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This note was uploaded on 03/17/2009 for the course BCOR 2500 taught by Professor Adams during the Spring '08 term at Colorado.
- Spring '08