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Data Preparation for Data Mining

Dorian Pyle

Senior Editor: Diane D. Cerra

Director of Production & Manufacturing: Yonie Overton

Production Editor: Edward Wade

Editorial Assistant: Belinda Breyer

Cover Design: Wall-To-Wall Studios

Text Design & Composition: Rebecca Evans & Associates

Technical Illustration: Dartmouth Publishing, Inc.

Copyeditor: Gary Morris

Proofreader: Ken DellaPenta

Indexer: Steve Rath

Printer: Courier Corp.

Designations used by companies to distinguish their products are often claimed

as trademarks or registered trademarks. In all instances where Morgan Kaufmann

Publishers, Inc. is aware of a claim, the product names appear in initial capital or all

capital letters. Readers, however, should contact the appropriate companies for more

complete information regarding trademarks and registration.

Morgan Kaufmann Publishers, Inc.

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USA

Telephone 415-392-2665

Facsimile 415-982-2665

Email mkp@mkp.com

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Order toll free 800-745-7323

Preface

What This Book Is About

This book is about what to do with data to get the mo

st out of it. There is a lot more to that

statement than first meets the eye.

Much information is available today about data warehouses, data mining, KDD, OLTP,

OLAP, and a whole alphabet soup of other acronyms that describe techniques and

methods of storing, accessing, visualizing, and using data. There are books and

magazines about building models for making predictions of all types—fraud, marketing,

new customers, consumer demand, economic statistics, stock movement, option prices,

weather, sociological behavior, traffic demand, resource needs, and many more.

In order to use the techniques, or make the predictions, industry professionals almost

universally agree that one of the most important parts of any such project, and one of the

most time-consuming and difficult, is data preparation. Unfortunately, data preparation

has been much like the weather—

as the old aphorism has it, “Everyone talks about it, but

no one does anything about it.” This book takes a detailed look at the problems in

preparing data, the solutions, and how to use the solutions to get the most out of the

data—whatever you want to use it for. This book tells you what can be done about it,

exactly how it can be done, and what it achieves, and puts a powerful kit of tools directly in

your hands that allows you to do it.

How important is adequate data preparation? After finding the right problem to solve, data

preparation is often the

key to solving the problem. It can easily be the difference between

success and failure, between useable insights and incomprehensible murk, between

worthwhile predictions and useless guesses.

For instance, in one case data carefully prepared for warehousing proved useless for

modeling. The preparation for warehousing had destroyed the useable information content

for the needed mining project. Preparing the data for mining, rather than warehousing,

produced a 550% improvement in model accuracy. In another case, a commercial baker

achieved a bottom-

line improvement approaching $1 million by using data prepared with the

techniques described in this book instead of previous approaches.

Who This Book Is For

This book is written primarily for the computer savvy analyst or modeler who works with

data on a daily basis and who wants to use data mining to get the most out of data. The

type of data the analyst works with is not important. It may be financial, marketing,

business, stock trading, telecommunications, healthcare, medical, epidemiological,

genomic, chemical, process, meteorological, marine, aviation, physical, credit, insurance,

retail, or any type of data requ

iring analysis. What is important is that the analyst needs to

get the most information out of the data.

At a second level, this book is also intended for anyone wh

o needs to understand the issues

in data preparation, even if they are not directly involved in preparing or working with data.

Reading this book will give anyone who uses analyses provided from an analyst’s work a

much better understanding of the results

and limitations that the analyst works with, and a far

deeper insight into what the analyses mean, where they can be used, and what can be

reasonably expected from any analysis.

Why I Wrote It

There are many good books available today that discuss how to collect data, particularly

in government and business. Simply look for titles about databases and data

warehousing. There are many equally good books about data

mining that discuss tools

and algorithms. But few, if any books, address what to do with the “dirty data” after it is

collected and before exploring it with a data mining tool. Yet this part of the process is

critical.

I wrote this book to address that gap in the process between identifying data and building

models. It will take you from the point where data has been identified in some form or

other, if not assembled. It will walk you through the process of identifying an appropriate

problem, relating the data back to the world from which it was collected, assembling the

data into mineable form, discovering problems with the data, fixing the problems, and

discovering what is in the data—that is, whether continuing with mining will deliver what

you need. It walks you through the whole process, starting with data discovery, and

deposits you on the very doorstep of building a data-mined model.

This is not an easy journey, but it is one that I have trodden many times in many projects.

There is a “beaten path,” and my express purpose in writing this book is to show exactly

where the p

ath leads, why it goes where it does, and to provide tools and a map so that you

can tread it again on your own when you need to.

Special Features

A CD-ROM acco

mpanies the book. Preparing data requires manipulating it and looking at

it in various ways. All of the actual data manipulation techniques that are conceptually

described in the book, mainly in Chapters 5 through 8 and 10, are illustrated by C

programs. F

or ease of understanding, each technique is illustrated, so far as possible, in a

separate, well-commented C source file. If compiled as an integrated whole, these

provide an automated data preparation tool.

The CD-ROM also includes demonstration versions of other tools mentioned, and useful

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