Why Data Mining Credit ratings/targeted marketing Given a database of 100,000 names which persons are the least likely to default on their credit cards? Identify likely responders to sales promotions Fraud detection Which types of transactions are likely to be fraudulent, given the demographics and transactional history of a particular customer? Customer relationship management Which of my customers are likely to be the most loyal, and which are most likely to leave for a competitor?: Data Mining helps extract such informationWhy Data Mining ◼ Credit ratings/targeted marketing: ◼ Given a database of 100,000 names, which persons are the least likely to default on their credit cards? ◼ Identify likely responders to sales promotions ◼ Fraud detection ◼ Which types of transactions are likely to be fraudulent, given the demographics and transactional history of a particular customer? ◼ Customer relationship management: ◼ Which of my customers are likely to be the most loyal, and which are most likely to leave for a competitor? : Data Mining helps extract such information