ones may store terabytes of data. Data in the warehouse is usually analyzed—or mined—using one of two popular algorithms, or step-by-step problem-solving procedures: • Regression analysis: Basically, regression analysis takes a particular set of numerical data and develops a mathematical formula that fits the data. This formula is then applied to new sets of data of the same type to predict future situations. • Classification analysis: Classification analysis is a statistics pattern-recognition process that is applied to data sets with more than just numerical data. APPLICATIONS OF DATA MINING Some short-term payoffs from data mining can be dramatic. One telephone company, for instance, mined its existing billing data to identify 10,000 supposedly “residential” customers who spent more than $1,000 a month on their phone bills. When it looked more closely, the company found that these customers were really small businesses trying to avoid paying the more expensive business rates for their telephone service. Q 2. What is DSS and ESS used for? Many DSSs are developed to support the types of decisions faced by managers in specific industries, such as airlines or real estate. Curious how airlines decide how many seats to sell on a flight when so many passengers are no-shows? American Airlines developed a DSS, the yield
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