Data Mining for Risk Analysis and Targeted Marketing

Commerical databases often contain critical business information concerning past performance which could be used to predict the future. However, the huge amounts of data can make the extraction of this business information almost impossible by manual methods or standard software techniques. Data mining techniques can analyze, understand and visualize the huge amounts ofstored data gathered from business applications and thus help companies sta stored data gathered from business applications and thus help companies stay competitive in today’s marketplace. Currently, a number of data mining applications and prototypes have been developed for a variety of business domains. Most of these applications are targeted at predictive modeling that finds pattern of data to help predict the future trend and behaviors of some entities. Apart from predictive modeling, other data mining tasks such as summarization, association, classification and clustering could also be applied to business databases. In this paper, we will illustrate the different data mining tasks applied to a real-life business database for risk analysis and targeted marketing.

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