Data Mining Essay

986 WordsDec 9, 20124 Pages
Assignment 4 Data Mining Tracie Simmons Dr. Terry House CIS 500 Information System for Decision Making December 3, 2012 Abstract The purpose of this paper is to analyze the development of complex algorithms that can mine mounds of data that have been collected from people and digital devices have led to the adoption of data mining by most businesses as a means of understanding their customers. First we will discuss how the benefits of data mining to the businesses when employing: predictive analytics to understand the behavior of customer, associations discovery in products sold to customers., web mining to discover business with Data Mining .Next, we will assess the reliability of the data mining algorithms. Last, we will analyze the privacy concerns raised by the collection of personal data for mining purposes. The way in which companies interact with their customers has changed dramatically over the past few years. A customer’s continuing business is no longer guaranteed. As a result, companies have found that they need to understand their customers better, and to quickly respond to the wants and needs of the customer. In addition, the time frame in which these responses need to be made has been shrinking. It is believed that successful companies need to react to each and every one of these demands in a timely fashion. The market will not wait for your response, and customers that you have today could vanish tomorrow. Let’s discuss how data mining is related to technical analysis. Technical analysis is concerned with the discovery of recurring patterns in financial markets time series for the purpose of predicting and profiting from trends and trend reversals the prices of freely traded asses such as stocks, market indexes, exchange traded funds, commodities, currencies and financial futures and options. Objective predictive analysis

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