Uploaded on Sep 19, 2018
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Data Mining
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Market
Basket
Analysis
Affinity
Analysis
Relationship
Mining
Association Rules
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Market Basket Analysis
• Large number of transaction records through data collected using bar-code scanners
• Each record = All items purchased on a single purchase transaction
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Association Rules
• What item goes with what
• Are certain groups of items consistently purchased together
• What business strategies will you device with this knowledge
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Association Rules
• Products shelf placement – a specific product beside another
• Selling of prominent shelves – Slotting Fees
• Stocking – Supply Chain Management
• Price Bundling – Combo offers. How?
Source: http://www.economist.com/news/business/21654601-supplier-rebates-are-heart-some-supermarket-chains-woes-buying-up-shelves
https://en.wikipedia.org/wiki/Association_rule_learning
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Association Rules – Cell phone faceplates
A store sells accessories for cellular
phones runs a promotion on
faceplates
OFFER!
Buy multiple faceplates from a choice of
6 different colors & get discount
How would you help store managers
device strategy to become more
profitable
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Association Rules – Cell phone faceplates
Transaction # Faceplate colors purchased Transaction # Red White Blue Orange Green Yellow
1 Red White Green 1 1 1 0 0 1 0
2 White Orange 2 0 1 0 1 0 0
3 White Blue 3 0 1 1 0 0 0
4 Red White Orange 4 1 1 0 1 0 0
5 Red Blue 5 1 0 1 0 0 0
6 White Blue 6 0 1 1 0 0 0
7 White Orange 7 0 1 0 1 0 0
8 Red White Blue Green 8 1 1 1 0 1 0
9 Red White Blue 9 1 1 1 0 0 0
10 Yellow 10 0 0 0 0 0 1
List Format Binary Matrix Format
Association Rules are probabilistic “if-then” statements
2 Main Ideas:
Examine all possible “if-then” rule formats
Select rules, which indicates true dependence
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Association Rules – Cell phone faceplates
Rules for { Red, White, Green}
1. If {Red, White} then {Green}
2. If {Red, Green} then {White}
3. If {White, Green} then {Red}
4. If {Red} then {White, Green}
5. If {White} then {Red, Green}
6. If {Green} then {Red, White}
Problem
• Many rules are possible
• How to select the
TRUE/GOOD rules from
all generated rules?
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Association Rules – Terminology
• If {Red, White} then {Green}
• If Red & White phone faceplates are purchased, then Green
faceplate is purchased
Antecedent: Red & White
Consequent: Green
“IF” part = Antecedent = A
“THEN” part = Consequent = C
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Association Rules – Performance Measures
Support
1
Confidence Lift
2 3
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Association Rules – Support
Support
1
• Consider only combinations that occur with
higher frequency in the database
• Support is the criterion based on frequency
Percentage / Number of transactions in which
IF/Antecedent & THEN / Consequent appear in
the data
Mathematically:
# transactions in which A & C appear together
_____________________________________
Total no. of transactions
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Support - Calculation
• What is the support for
“if White then Blue”?
1. 4
2. 40%
3. 2
4. 90%
Transaction # Faceplate colors purchased
1 Red White Green
2 White Orange
3 White Blue
4 Red White Orange
5 Red Blue
6 White Blue
7 White Orange
8 Red White Blue Green
9 Red White Blue
10 Yellow
• What is the support for
“if Blue then White”?
1. 4
2. 40%
3. 2
4. 90%
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Support - Problem
• Generating all possible rules is exponential in the
number of distinct items
• Solution:
Frequent item sets using Apriori Algorithm
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Apriori Algorithm For k products:
1
2
3
4
5
Set minimum support criteria
Generate list of one-item sets that meet the support
criterion
Use list of one-item sets to generate list of two-item sets
that meet support criterion
Use list of two-item sets to generate list of three-item sets
that meet support criterion
Continue up through k-item sets
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Support – Criterion = 2
Transaction # Faceplate colors purchased
1 Red White Green
2 White Orange
3 White Blue
4 Red White Orange
5 Red Blue
6 White Blue
7 White Orange
8 Red White Blue Green
9 Red White Blue
10 Yellow
Item set Support (Count)
{Red} 5
{White} 8
{Blue} 5
{Orange} 3
{Green} 2
{Red, White} 4
{Red, Blue} 3
{Red, Green} 2
{White, Blue} 4
{White, Orange} 3
{White, Green} 2
{Red, White, Blue} 2
{Red, White, Green} 2
Create rules from
frequent item sets only
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Support Criterion Example
Rules for { Red, White, Green}
1. If {Red, White} then {Green}
2. If {Red, Green} then {White}
3. If {White, Green} then {Red}
4. If {Red} then {White, Green}
5. If {White} then {Red, Green}
6. If {Green} then {Red, White}
How good are these
rules beyond the point
that they have high
support?
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Association Rules – Confidence
Confidence
2
• Percentage of If/Antecedent transactions that
also have the Then/Consequent item set
Mathematically:
P (Consequent | Antecedent) = P(C & A) / P(A)
# transactions in which A & C appear together
_____________________________________
# transactions with A
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Confidence - Calculation
• What is the confidence
for “if White then Blue”?
1. 4/5
2. 5/8
3. 5/4
4. 4/8
Transaction # Faceplate colors purchased
1 Red White Green
2 White Orange
3 White Blue
4 Red White Orange
5 Red Blue
6 White Blue
7 White Orange
8 Red White Blue Green
9 Red White Blue
10 Yellow
• What is the confidence
for “if Blue then White”?
1. 4/5
2. 5/8
3. 5/4
4. 4/8
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Confidence - Weakness
• If antecedent and consequent have:
High Support => High / Biased Confidence
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Association Rules – Lift Ratio
Lift Ratio
3
Confidence / Benchmark
confidence
Benchmark assumes independence between
antecedent & consequent:
P(antecedent & consequent) = P(antecedent) X P(consequent)Benchmark confidence
P(C|A) = P(C & A) / P(A) = P(C) X P(A) /P(A) = P(C)
# transactions with consequent item sets
_____________________________________
# transactions in database
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Interpreting Lift
• Lift > 1 indicates a rule that is useful in finding consequent item
sets
• The rule above is much better than selecting random transactions
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Lift - Calculation
• What is the Lift for “if White then Blue”?
1. 4/8
2. 5/10
3. 4/5
4. 1
Transaction # Faceplate colors purchased
1 Red White Green
2 White Orange
3 White Blue
4 Red White Orange
5 Red Blue
6 White Blue
7 White Orange
8 Red White Blue Green
9 Red White Blue
10 Yellow
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Rules selection process
Generate all rules that meet
specified Support & Confidence
Find frequent item sets based on
Support specified by applying
minimum support cutoff
From these item sets, generate rules
with defined Confidence. By filtering
remaining rules select only those with
high Confidence
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Rules
Inputs Data
# Transactions in Input Data 10
# Columns in Input Data 6
# Items in Input Data 6
# Association Rules 8
Minimum Support 2
Minimum Confidence 70.00%
List of
Rules
Rule: If all Antecedent items are purchased, then with Confidence percentage Consequent items will also be
purchased.
Row ID Confidence %
Antecedent
(A)
Consequent
(C)
Support for
A
Support for
C
Support for
A & C
Lift
Ratio
8 100 green red & white 2 4 2 2.5
4 100 green red 2 5 2 2
6 100 white & green red 2 5 2 2
3 100 orange white 3 8 3 1.25
5 100 green white 2 8 2 1.25
7 100 red & green white 2 8 2 1.25
1 80 red white 5 8 4 1
2 80 blue white 5 8 4 1
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Alarming!
Random data can generate apparently
interesting association rules
More the rules you produce, greater the
danger
Rules based on large numbers of records
are less subject to this danger
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Profusion of rules
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Applications
• What if Product & Stores are selected as a tuple for analysis?
• What if crimes in different
geographies for each week
is known?
Narcotics
Robbery
AssaultBattery Narcotics
Public
Peace
Violation
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Recap with an example
• How can you use the information if you know about the
purchase history of customers in a specific geography?
• Supermarket database has 100,000 POS transactions
• 2000 transactions include both Strepsils & Orange Juice
• 800 of the above 2000 include Soup purchases
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Recap with an example
• What is the support for rule “IF (Orange Juice & Strepsils) are purchased
THEN (Soup) is purchased on the same trip”?
1. 0.8 %
2. 2 %
3. 40 %
• What is the confidence for rule “IF (Orange Juice & Strepsils) are purchased
THEN (Soup) is purchased on the same trip”?
1. 0.8 %
2. 2 %
3. 40 %
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Recap with an example
• What is the lift ratio for rule “IF (Orange Juice & Strepsils) are purchased
THEN (Soup) is purchased on the same trip”?
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Sequential Pattern Mining
Purchases / events occur at
the same time
• If person X has taken “Data
Mining Unsupervised” training
in 1st Quarter, Person X has
also taken “Data Mining
Supervised” training in 2nd
Quarter
• Based on the statement
above, recommend “Data
Mining Supervised” training to
those who have enrolled for
“Data Mining Unsupervised”
NOT
IT IS
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Association Rules vs. Sequential Pattern Mining
• Look for temporal patterns
• Order/sequence of a & b matters for a rule “b follows a”
• However, what happens in between a & b doesn’t matter
• In phone faceplates dataset:
Association among items, which were bought within the
same week were discovered
How about finding what they would buy next week or the
week after, if they had bought ‘x’ in this week?
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Applications
• Identify the appropriate Basket
• Identify popular taxi routes
Sequential pattern from GPS tracks;
spatiotemporal records of taxi
trajectories
First cluster collocated customers
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THANK YOU
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