ABSTRACT
Data mining is widely used by banking rms in soliciting credit card customers, by insurance and telecommunication companies in detecting fraud, by telephone companies and credit card issuers in identifying those potential customers most likely to churn, by manufacturing rms in quality control, and many other applications. Data mining is being applied to improve food and drug product safety and detection of terrorists or criminals. Data mining involves statistical and/or articial intelligence (AI) analysis, usually applied to large-scale data sets. Masses of data generated from cash registers, from scanning, and from topic specic databases throughout the company are explored, analyzed, reduced, and reused. Searches are performed across different models proposed for predicting sales, marketing response, and prot. Though automated AI methods are also used, classical statistical approaches are fundamental to data mining.
