Reviewed by Jan 05, 2021| Updated on
Data mining in huge data sets searches for secret, true, and potentially useful patterns. Data Mining is about finding between the data unsuspected/previously unknown relationships. It is a multidisciplinary skill that uses the technologies of machine learning, statistics, AI, and databases.
The insights obtained from data mining can be used for marketing, identification of fraud, and scientific discovery. Data mining is also called the discovery of knowledge, extraction of knowledge, analysis of data/patterns, processing of information, etc.
A bank wants to look for new ways to boost revenue from its credit card operations. They want to test that use will double if fees are halved. Bank's record on average credit card balances, payment amounts, use of credit limits, and other vital parameters is several years.
They create a model for testing the effect of the proposed new company policy. Results of the data indicate that cutting fees in half for a focused client base might boost revenues.