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Table of contents
1.
Introduction
1.1.
What is Data Mining?
2.
Applications of Data Mining
2.1.
1. Data mining in Education:
2.2.
2. Data Mining in Healthcare:
2.3.
3. Data Mining in Fraud Detection
2.4.
4. Data Mining in Lie Detection
2.5.
5. Data Mining in Market Basket Analysis
3.
Frequently Asked Questions
4.
Conclusion
Last Updated: Mar 27, 2024

Applications of Data Mining

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Introduction

What does data mining mean? It is pretty clear from its name itself. Data mining means extracting valuable business information from an extensive database. Like valuable minerals are extracted(mined)from deep below the Earth; similarly, important information is searched from a vast database. Hence the name. Let us dive deeper into this topic.

What is Data Mining?

Data mining refers to a technology that involves the mining or the extraction of knowledge from extensive amounts of data. Data Mining is the computational procedure of locating patterns in massive data sets involving artificial intelligence, machine learning, statistics, and database systems. The main aim of the data mining process is to extract information from a data set and translate it into an understandable structure to be used in the future.

Applications of Data Mining

Data Mining is mainly used by organisations with heavy consumer demands- Retail, Communication, Financial, and marketing companies, to determine price, consumer preferences, product positioning, and impact on sales, customer satisfaction, and corporate profits. The following areas use data application widely:

1. Data mining in Education:

Education data mining is a freshly soaring field associated with developing techniques that extract knowledge from the data generated from Educational Environments. EDM affirms students' future learning behaviour, studies the impact of academic support, and promotes learning science. Many organisations use data mining to make decisions and predict students' results. The institution can decide what and how to teach based on results. 

2. Data Mining in Healthcare:

Data mining is used extensively even in the healthcare field, having excellent potential to improve health. It uses data analytics for better insights and finds the best practices to improve healthcare services and reduce costs. Data mining approaches such as Machine learning, Data visualisation, Multidimensional database, Soft computing, and statistics are used by analysts. Data Mining is also used to forecast patients in each category and ensures that the patients get the ample amount of care at the right place and time. Data mining also recognizes fraud and abuse to healthcare insurers.

3. Data Mining in Fraud Detection

The fraud actions cause billions of dollars worth of money to be lost. Traditional methods of fraud detection are comparatively time-consuming and sophisticated. Data mining provides meaningful patterns and turns data into information. An ideal fraud detection system must protect the data of all users. Supervised methods comprise a collection of sample records. These records are recognized as fraudulent or non-fraudulent. The model is constructed based on this data, and the technique is used to identify whether the document is fraudulent or not. 

4. Data Mining in Lie Detection

Capturing a criminal is a big deal, but bringing out the truth from him is challenging. Law enforcement  use the techniques of data mining to monitor suspected terrorist communications, investigate crime cases, etc. This technique includes text mining which is seeking meaningful patterns in unstructured data. The collected information from the previous investigations is compared, and a model for lie detection is constructed. 

5. Data Mining in Market Basket Analysis

Data Mining in market basket analysis is a method based on a hypothesis. If one buys a specific product, he is more likely to buy another product. This technique makes the retailer understand the buyer's purchase behaviour. This data assists the retailer in understanding what the buyer requires of them and making changes in the store's layout accordingly. 

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Frequently Asked Questions

  1. What is data mining?
    Data mining refers to a technology that involves the mining or the extraction of knowledge from extensive amounts of data. Data Mining is the computational procedure of locating patterns in massive data sets involving artificial intelligence, machine learning, statistics, and database systems.
     
  2. What is the most common application of data mining?
    The most common applications of data mining are in the fields of healthcare, education, market basket analysis, lie and fraud detection.

Conclusion

In this article, we have extensively discussed Data Mining technology and all its applications. We hope that this blog has helped you enhance your knowledge, and if you wish to learn more, check out our Coding Ninjas Blog site and visit our Library. Do upvote our blog to help other ninjas grow.

Happy Learning! 

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