Data mining is a method of sorting through vast amounts of data and seeking out the relevant information. The word “mining” refers to pulling out the information. Data mining is extensively being used by the business sectors such as retail, financial, communication, and marketing organization where consumer focus is a concern.
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• Data Mining to collect data related to investors and investments
• Data Mining from networks and other web resources
• Data Mining from portals, directories
• Data Mining From e-books, reports and manuals
• Data mining from spreadsheets and financial statements
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Data mining is the procedure of analyzing data from different perception and summarizing it into useful information. The information may be to increase revenue, cuts costs, or both. Data mining is also known as data or knowledge discovery. The data mining software allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified.
Data mining is mainly used by today in the companies which primarily focus on customer for example the companies like financial, communication and marketing organizations. It enables these companies to determine relationships among “internal” factors and “external” factors.
Use of Data Mining Services
All businesses depends on data some way or the other. While some have data as their underlying procedures, others base their business proceedings on it.Data mining services are of greatest importance in applications like
• Understanding Customer needs
• Product analysis
• Demand and supply analysis
• E-commerce trends
• Telecommunications etc.
Steps of Data Mining
• gathering information
• appraisal of the collected data
• Internet research to acquire more details of the collected content
• Extracting more information from online resources
• Merging the data obtained from the internet with the existent ones
• Processing the entire accumulated data and extracting useful information out of it
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Data mining is the wonderful technique to analyze the result of a particular situation which is going to happen next. We can either call this process as “Modeling”. Modeling is simply the process of constructing a model based on one situation and then implementing the same into another situation which we don’t know the result. This is the practice that people have been following for a long time as before the advent of data mining technology. Now, we are using the advanced technique of modeling which is widely termed as Data Mining. But, it is not much different from building a model.
Generally, we used to feed a lot of information about the variety of situation where an answer is known and then we will run the data mining software through that data on our computer and fetch the characteristic of the data that would help to construct the model. Hence, this model would be use in to the similar situation for which we don’t know the result. By creating the models, there are chances to get negative results. But still, we should take it as an experience and of course we have the opportunity to build much better model. We can store the different models we have created on our computer and can use them in the future.
If someone told that they have the model which could predict the result, we should carefully examine if he had a good model. The best way to test the model is asking him to apply the model for your database where in you already know the result and compare his result. With the help of data mining, we can easily execute this test process where we face critical situation. Using data mining, we can set aside some of our data in a crypt to separate it from the mining process. Once it is completed, the results can be compared with the data held in the crypt to confirm the validity of the model. If the model works, it remarks should keep hold for the domed data.