University of Science and Technology of Southern Philippines

Alubijid | Cagayan de Oro | Claveria | Jasaan | Oroquieta | Panaon

Name: Sarsalijo, Lady Maxine Y. Section: IT3R4

Course code: IT325 Professor: Dr. Jocelyn B. Barbosa and
Mrs. Geraldine Blanco
Course Description: Elective 2 – Machine Learning Semester/SY : 2022-2023

Introduction to Data Mining

Objectives:

• To identify the various applications of data mining.

• To enumerate the major issues in Data mining.

1. Discuss how data mining is applied in each area as enumerated below:

a. Marketing
b. Health care
c. Education
d. Retail Industry
e. Banking

a. Marketing - The practice of data mining is prevalent in the field of marketing, where it is utilized
to uncover patterns and valuable insights from customer data. This involves analyzing customers'
purchase histories, demographics, behavior, and preferences to identify potential market
segments, create customized advertising messages, and improve marketing campaigns to enhance
customer engagement and sales.

b. Health care - Data mining has a crucial role in healthcare as it helps in enhancing patient
outcomes, reducing expenses, and increasing efficiency. Through the analysis of various patient
data such as electronic health records, medical images, and genomic data, healthcare providers can
detect early warning signs of illnesses, personalize treatment plans, and predict possible patient
outcomes.

c. Education - The application of data mining in the education sector has become more dominant in
recent times, mainly to enhance student performance, forecast potential outcomes, and optimize
teaching methodologies. Teachers can examine data such as test scores, attendance records, and
demographic information to identify students who may require additional support, tailor learning
experiences to individual needs, and assess the efficiency of teaching techniques.
 d. Retail Industry - Retailers use data mining to enhance the shopping experience for customers,
increase sales, and make supply chain management more efficient. By studying data related to
customer purchases, demographics, and behavior, retailers can identify groups of customers,
suggest products that suit their preferences, and refine pricing strategies

e. Banking - In the banking industry, data mining has gained significant importance as it helps to
identify misleading activities, mitigate risk, and enhance the customer experience. Banks analyze
transaction data, customer behavior, and credit history to recognize suspicious activity, predict
customer attrition, and provide customized product offerings.

2. Although data mining has gained popularity in today’s world as it has a lot of
advantages, it also has significant number of issues. List down at least three (3) issues and
explain.

Listed below are some of the significant number of issues in data mining:

1. Data Privacy - One of the primary concerns associated with data mining is data privacy.
Data mining often involves the use of sensitive and personal information, and if this
information is not properly secured, it can be vulnerable to unauthorized access, misuse,
or abuse. Data privacy regulations have been put in place to protect individual privacy and
limit the use of personal data but data breaches and privacy violations still happen and can
cause harm to both individuals and organizations.

2. Bias and Discrimination - Data mining can also result in bias and discrimination due to the
inherent limitations of data sources or algorithms used in the analysis process. If the data
used for analysis is biased, the resulting insights may also be biased, leading to unfair
treatment of certain individuals or groups. For example, an algorithm trained on historical
data may perpetuate existing inequalities and biases, leading to discriminatory outcomes.
Therefore, it is important to ensure that data mining algorithms are designed to identify
and mitigate any potential biases.

3. Misinterpretation - Another issue associated with data mining is the potential for
misinterpretation of results. Data mining algorithms may identify patterns that are not
necessarily meaningful or relevant. If these results are misinterpreted, it can lead to
incorrect conclusions and decisions that can harm individuals or organizations. Therefore,
it is essential to interpret data mining results with care, understand the limitations of the
data and algorithms used, and validate the findings through further testing and analysis.

Deadline: Check your USTeP account

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