Classification is a form of data analysis that extracts models describing important data classes. Such models, called classifiers, predict categorical (discrete, unordered) class labels. Such analysis can help provide users with a better understanding of the data at large. Classification and numeric prediction are the two major types of prediction problems. Many classification methods have been proposed by researchers in machine learning, pattern recognition, and statistics. Most algorithms are memory resident, typically assuming a small data size. Recent data mining research has built on such work, developing scalable classification and prediction techniques capable of handling large amounts of disk-resident data. Classification has numerous applications, including fraud detection, target marketing, performance prediction, manufacturing, and medical diagnosis. This chapter introduces the main ideas of classification. The basic techniques for data classification such as how to build decision tree classifiers, Bayesian classifiers, and rule-based classifiers are discussed. The process of evaluating and comparing different classifiers is also elaborated. Various measures of accuracy are given as well as techniques for obtaining reliable accuracy estimates. Methods for increasing classifier accuracy are presented, including cases for when the data set is class imbalanced (i.e., where the main class of interest is rare). The general approach to classification is described as a two-step process. In the first step, a classification model based on previous data is build. In the second step, it is determined if the model's accuracy is acceptable, and if so, the model is used to classify new data.