data mining using recursive partitioning
TRANSCRIPT
Data Mining Using Recursive Partitioning
Peter WestfallWith some help from
Dr. Barry Macy, Dr. Seul-Hee Yoo, and TTU Institutional Research
Business Intelligence
= Transforming Business Data into Action
What Data?Lots of data.http://www.pcworld.com/news/article/0,aid,113170,00.asp
Text, numeric, sound, pictures, video.
Old and New Learning Paradigms
Old:
THEORYData
Analysis THEORY
New:Theory
DATAANALYSIS
DATAANALYSIS
Typical Data Mining Methods
• Clustering (eg, customer segmentation)
• Affinity (eg, what items do people buy together)
• Exception analysis (eg, credit card fraud, terrorism)
• Predictive Modeling (eg, deciding loans, predicting employee turnover, predicting likely customers)
Recent Horizons in Data Mining
• Visualizations
• Text mining
• Audio mining
• Video mining
Requirements of DM Tools
• Simple (even an MBA can use it)
• Actionable results
• Flexible, open-ended (“Analysis at the speed of thought”)
• Scale-Up: Can handle massive data sets
• Drill-Down: Ability to investigate sub-units
Recursive Partitioning
• A predictive modeling tool• Also called “Decision Trees”, “CART”• Works by recursively splitting data set• Software:
– SAS Enterprise Miner– SPSS Clementine– SPLUS– Lots of Freeware– Demo: “Partitionator” of Eureka! Technologies.http://www.eurekatechnologies.com/MoreDetails.aspx
Example 1: Survey of Innovative Organizations
• Action Orientation: Which management levers lead to better performance?
• V24=earned profit in last 5 years: – 1=all five – 2=most of 5 – 3 = some of five – 4 = none of 5
Interesting Variables
• V617B = Number of years that elimination of perks for certain groups of people has been in effect
• V894A = Percent of workforce involved in SPC/SQC/TQC training– 1=None – 2=1-20%– …– 7=100%
Example 2:Texas Tech University Ratings
By Thesis Students
• Who is satisfied? Who is not satisfied?
• Action Orientation – – Improve pockets where students are
dissatisfied.– Emulate pockets where students are satisfied.
Example 3: Business Dress Styles Rated
Lower Rated Dress Types
Final Tree – Dress Ratings
Questions?
Comments?
Poison-tipped darts?