Data Mining Techniques: Theory and Practice

Course Details
Code: BDMT12
Tuition (USD): $2,475.00 • Classroom (3 days)
Course Details
GSA (USD): $2,244.33 • Classroom (3 days)

This course introduces a data mining methodology that is a superset to the SAS SEMMA methodology around which SAS Enterprise Miner is organized. The course also introduces a wide range of data mining algorithms and both theoretical knowledge and practical skills. In this class, you work through all the steps of a data mining project, beginning with problem definition and data selection, and continuing through data exploration, data transformation, sampling, portioning, modeling, and assessment.

Skills Gained

  • use a data mining methodology
  • build and use decision trees and neural networks for modeling and scoring
  • use survival analysis and create survival curves.

Who Can Benefit

  • Business analysts, their managers, and statisticians


  • No prior knowledge of statistical or data mining tools is required.

Course Details

Introduction to Data Mining

  • what is data mining?
  • directed and undirected data mining
  • models
  • profiling and prediction

Data Mining Methodology

  • why have a methodology?
  • how data miners can inadvertently learn things that are not true
  • translating business problems into data mining problems
  • the importance of model stability
  • finding the right input variables
  • sampling to create balanced model sets
  • partitioning to create training, validation, and test sets
  • data preparation
  • model assessment

Data Exploration

  • developing intuition about data
  • data structure
  • data types
  • data values
  • exploring distributions
  • summary statistics
  • histograms
  • using SAS Enterprise Miner for data exploration

Regression Models

  • the null hypothesis
  • statistical significance
  • confidence bounds
  • variance and standard deviation
  • standardized values
  • correlation
  • linear regression
  • logistic regression
  • using SAS Enterprise Miner to build regression models

Decision Trees

  • decision trees as data exploration and classification tools
  • decision trees for modeling and scoring
  • decision trees for variable selection
  • alternate representations of decision trees
  • algorithms used to build decision trees
  • splitting criteria
  • recognizing instability and overfitting in decision tree models
  • capturing interactions between variables
  • using SAS Enterprise Miner to build decision trees

Neural Networks

  • origins of neural networks
  • neural networks compared with regression
  • algorithms used to train neural networks
  • data preparation requirements for neural networks
  • picking appropriate inputs for neural networks
  • creating neural network models using SAS Enterprise Miner

Memory-Based Reasoning

  • similarity and distance
  • distance metrics appropriate for different kinds of data
  • the role of the training set in memory-based reasoning (MBR)
  • combining the votes of several neighbors
  • other K-nearest neighbor techniques
  • collaborative filtering
  • using the SAS Enterprise Miner MBR node


  • more on similarity and distance
  • the -means algorithm
  • divisive clustering
  • agglomerative clustering
  • data preparation for clustering
  • interpreting clusters
  • finding clusters with SAS Enterprise Miner

Survival Analysis

  • origins of survival analysis
  • how business data is different from clinical data
  • hazards and hazard charts
  • retention curves and survival curves
  • calculating survival from retention
  • calculating hazards empirically
  • parametric hazard models
  • censoring
  • competing risks
  • survival-based forecasting
  • using SAS code in SAS Enterprise Miner to create survival curves

Association Rules

  • market basket analysis
  • association rules
  • sequential pattern analysis
  • using SAS Enterprise Miner to discover associations in retail data

Link Analysis

  • background on graph theory
  • sphere of influence
  • using link analysis to generate derived variables
  • graph-coloring algorithm
  • Kleinberg's algorithm

Genetic Algorithms

  • optimization techniques and problems (SAS/OR software)
  • other algorithms
  • linear programming problems
  • genetic algorithms
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