Using Your Knowledge

Using Your Knowledge

Key Terms and Concepts , -,’sis 300

-.:s intelligence (BI) 298 –

=>s intelligence (BI)

-,,cation 298 ” :ss intelligence (BI) selver 327 “=:s intelligence (BI) system 298

=: analysis 315 ‘:ence 316 –selling 316

– .–quisition 300 -.qgregator 314 – :-irning 314 . ,,,-arehouse 306 i- rn support systems 299 :-ln tree 320

Dimension 311 Drill do’rrm 312 Dynamic reports 326 Expert system 324 Granularity 307 If…then… 321 Indexing 323 Knowledge management (KM) Lift 3r7 Market-basketanalysis 316 Measure 311 Neural networks 316 OIAP cube 311 Online analytical

processing (OIAP) 311

Using Your Knowledge 335

Publish results 300 Pull publishing 300 Push publishing 300 Real Simple Syndication (RSS) 323 Regressionanalysis 315 Reportingapplication 309 RFM analysis 310

322 RSS feed 323 RSS reader 323 Semantic security 330 Static reports 326 Subscriptions 327 Supervised data mining 315 Support 316 Unsupervised data mining 3i5




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Using Your Knowledge

–sing words, not SQL, explain the logic of the steps :at Lucas must have used to use the tables in the top : art of Figure 9-4 to create the tables in the center :art of the figure. Verify that all necessary data are :resent. Make and justify assumptions, if required.

* -, sing words, not SQL, explain the logic of the .ieps thatAddison must have used to use the tables in -re middle part of Figure 9-4 to create the ltem- : u ntmary -D ata table. Verifu that

all ne ce s s ary data :re present. Make and justi4rassumptions, if required.

. Reflect on the differences between reporting slstems and data mining systems. What are their

‘imilarities and differences? How do their costs liffer?\.Vhat benefits does each offer? Howwould an ,:rganization choose between these two BI tools?

-, Suppose you are a member of the Audubon Society, and the board of the local chapter asks you to help them analyze its member data. The group wants ro analyze the demographics of its membership against members’ activiry including events attended, classes attended, volunteer activities, and donations. Describe two different reporting applications and one data mining application that they might develop. Be sure to include a specific description of the goals of each system.

i. Suppose you are the director of student activities at your university. Recently, some students have charged that your department misallocates its resources. They claim the allocation is based on outdated student preferences. Funds are given to activities that few students find attractive, and insufficient funds are

allocated to new activities in which students do want to participate. Describe how you could use reporting and/or data mining systems to assess this claim.

6. Suppose you work at Costco or another major, national, big-box store, and you do a market-basket analysis and identiff the25 pairs of items in the store that have the highest lift and the 25 pairs of items that have the lowest lift. \A/hat would you do with this knowledge? Costco (or your big-box store) doesn’t have salespeople, so up-selling is not an option.’r4/hat else might you do with information about these items’lift? Consider advertising, pricing, item loca- tion in stores, and any other factor that you might adjust. Do you think the lift calculations are valid for all stores in the United States (or other countryX\.A/hy or why not? Are the 50 pairs of products with the highest and lowest lift the best place to focus your attention? \.\Ihat other 50 pairs of products might you want to consider? Explain.

7. Describe a use for RFM analysis at Fox Lake. Consider golf, tennis, the restaurant, or the pro shop as candi- dates. \Mhich do you think is best suited to RFM? Explain your rationale. For your application, explain whatyou would do for customers who have the follow- ingscores: [1, 1, 1], [3, 1, 1], [1,4, 1], [3,3, 1], [1, 1,3].

8. Describe an application for market-basket analysis for the Fox Lake restaurant. Explain how you would use the knowledge that two menu items have a lift of 7. Explain how you would use the knowledge that two items have a lift of .003. If they have a lift of 1.03? If they have a lift of 2.1?

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