Assignment 4: Data Mining
CIS 500
Dr. Besharatian
Submitted by: Eric Spurbeck
December 7, 2013

Abstract
This paper will discuss the process of data mining, how it is used, for what purpose it is used and what information can be gathered from the data, which is compiled from data mining.

Assignment 4: Data Mining

Webopedia (2013) defines data mining as, "A class of database applications that look for hidden patterns in a group of data that can be used to predict future behavior. For example, data mining software can help retail companies find customers with common interests." This means that large groups of data that is derived by information obtained through customers, customer purchases and customer buying habits. Businesses use this information for a variety of reasons; it is used for purchasing merchandise, tracking how certain merchandise is selling and even customers buying habits. Webopedia goes on to state that "data mining is popular in the science and mathematical fields but also is utilized increasingly by marketers trying to distill useful consumer data from Web sites."
Predictive analytics are used to understand customer's behaviors, according to the article Predictive Analytics with Data Mining: How It Works (Siegel, Feb. 2005) it describes how this method has a predictor. This is "a single value measured for each customer" this is based on the customers purchased over a period and sets higher values for the most recent customer purchases. The article goes on to say, "this predictor is usually a reliable campaign response predictor: you will receive more responses from those customers more highly ranked by recency." By doing this a company calls their customers starting with the most recent and moves on down the line improving their response results as they go.
With each prediction you must have goal in mind, for example you may