what is data mining?

Answer 1

A simple example of data mining, often called Market Basket Analysis, is its use for retail sales. If a clothing store records the purchases of customers, a data mining system could identify those customers who favour silk shirts over cotton ones.

Another is that of a supermarket chain who, through analysis of transactions over a long period of time, found that beer and diapers were often bought together. Although explaining this relationship may be difficult, taking advantage of it is easier, for example by placing the high-profit diapers in the store close to the high-profit beers. (This example is questioned at Beer and Nappies -- A Data Mining Urban Legend.)

The two examples above deal with association rules within transaction-based data. Not all data is transaction based and logical or inexact rules may also be present within a database. In a manufacturing application, an inexact rule may state that 73% of products which have a specific defect or problem, will develop a secondary problem within the next 6 months.

Answer 2

Searching large volumes of data, usually using a computer, in order to find patterns.