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Data Mining

with Business Analytics


CLASS: MTWHF 9:00 a.m.-12:00 m.
Saturday 9:00 a.m.-12:00 p.m.

Prof. Nedret Billor

billone@auburn.edu http://auburn.edu/∼billone/

Course Description:
Massive collections of data are created by businesses, governments, and
individuals as a by-product of their activity. Therefore, decision-makers and
systems depend on intelligent technology to analyze data systematically to
improve decision-making. Business Analytics, or more generically, analytics,
include a range of data analysis methods. The next level of business analytics,
now termed Business Intelligence (BI), refers to data visualization and reporting
for understanding “what happened and what is happening.” This is done by use
of charts, tables, and dashboards to display, examine, and explore data. BI,
which earlier consisted mainly of generating static reports, has evolved into
more user-friendly and effective tools and practices, such as creating interactive
dashboards that allow the user not only to access real-time data, but also to
directly interact with it. Business Analytics now typically includes BI as well as
sophisticated data analysis methods, such as statistical models and data mining
algorithms used for exploring data, quantifying and explaining relationships
between measurements, and predicting new records. Therefore, it is vital to
train individuals with these skills who will take leading roles in business and
industry.

Objectives and Methodology:


In this course, our focus is on the ability to understand and translate business
challenges into data mining problems and on examining how data analysis
technologies can be used to improve decision-making. Therefore, we will
emphasize heavily on students obtaining hands-on experience in implementing
a range of commonly used data mining techniques by using ”R”, the widely used
programming language, on business analytic problems. We will study the
fundamental principles and techniques of data mining, and we will examine
real-world examples and cases to place data- mining techniques in context, to

Facultad de Administración – Universidad de los Andes


Calle 21 No. 1-20. Edificio SD, código postal: 111711. Bogotá - Colombia. | Conmutador: (571) 339 49 49/99 |
Línea directa: (571) 332 4555 | http://administracion.uniandes.edu.co | Correo electrónico: administracion@uniandes.edu.co

Universidad de los Andes | Vigilada Mineducación. Reconocimiento como Universidad: Decreto 1297 del 30 de mayo de 1964. Reconocimiento
personería jurídica: Resolución 28 del 23 de febrero de 1949 Minjusticia.
develop data-analytic thinking, and to illustrate that proper application is as
much an art as it is a science. The course uses lectures and computer lab
study based on case studies. Computer Lab (1 hour) requires in-lab(class)
active participation from students, is essential to understand the relevance of
the concepts of the statistical methods discussed in class.

At the completion of this course, students will be able to:


• think carefully and systematically about whether and how data can
improve business perfor- mance, to make better-informed decisions for
management, marketing, and so on by consid-
ering business problems data-analytically,
• to interact competently on the topic of data mining for business
intelligence. Know the underpinnings of data mining techniques,
algorithms, and systems well enough to interact with expert data miners,
consultants, Chief Technology Officers,and so on,
• have had hands-on experience mining data.
Speciftc Objectives:
1. Give an Overview of Data Mining Process and Data Exploration.
2. Discuss Supervised Learning techniques (e.g. Prediction and Classification
Methods), Unsu- pervised Learning techniques (e.g. Clustering).
3. Emphasize on the necessity of the use of a programming language for
computations in data analysis, therefore introduce R programming
(almost the most widely used programming language for data analysis).
4. Discuss how the outputs of the statistical methods should be
communicated to the audience in business or related disciplines.

Course Content and Course Schedule:

Content :

• Topic 1.1: Preliminaries: Overview of Data Mining Process


• Topic 1.2: Data Exploration and Dimension Reduction.
• Topic 2: Prediction and Classification Methods
– Topic 2.1: Multiple Linear Regression

Facultad de Administración – Universidad de los Andes


Calle 21 No. 1-20. Edificio SD, código postal: 111711. Bogotá - Colombia. | Conmutador: (571) 339 49 49/99 |
Línea directa: (571) 332 4555 | http://administracion.uniandes.edu.co | Correo electrónico: administracion@uniandes.edu.co

Universidad de los Andes | Vigilada Mineducación. Reconocimiento como Universidad: Decreto 1297 del 30 de mayo de 1964. Reconocimiento
personería jurídica: Resolución 28 del 23 de febrero de 1949 Minjusticia.
– Topic 2.2: k-Nearest Neighbors
– Topic 2.3: Classification and Regression Trees
– Topic 2.4: Logistic Regression
– Topic 2.5: Discriminant Analysis
• Topic 3: Cluster Analysis.
• Topic 4: Forecasting Time Series
• Topic 5: Text Mining

Schedule:

# Topic/Time Activity Reading


Day/date
July 2, T 1.1–1.2, 6-9pm Lab 1 Chapters 1 through 4
July 3, W 2.1, 6-9pm Lab 2 and Quiz 1 Chapter 6
July 4, H 2.2, 6-9pm Lab 3 Chapter 7
July 5, F 2.3, 6-9pm Lab 4 and Quiz 2 Chapter 9
July 6, Sa 2.4, 9am-12pm Lab 5 Chapter 10
July 8, M 2.5, 6-9pm Lab 6 and Mini Project on Regression Chapter 12
and Classification
July 9, T 3, 6-9pm Lab 7 Chapter 15
July 10,W 4, 6-9pm Lab 8 and Quiz 3 Chapters 16 and 17
July 11, H 5, 6-9pm Lab 9 Chapter 20
July 12, F Final Project, 6- Presentation Reading
9pm

Facultad de Administración – Universidad de los Andes


Calle 21 No. 1-20. Edificio SD, código postal: 111711. Bogotá - Colombia. | Conmutador: (571) 339 49 49/99 |
Línea directa: (571) 332 4555 | http://administracion.uniandes.edu.co | Correo electrónico: administracion@uniandes.edu.co

Universidad de los Andes | Vigilada Mineducación. Reconocimiento como Universidad: Decreto 1297 del 30 de mayo de 1964. Reconocimiento
personería jurídica: Resolución 28 del 23 de febrero de 1949 Minjusticia.
Evaluation Method

Students will be evaluated based on

Projects: Two projects and one final project.

Mini Proj: 25% (group)


3 Quizzes:25%
Lecture and Computer Lab participation: 15%
Final Project: 35% (group)

The participation (Lecture and Computer) grades depend on 1) attendance


2) contribution to group assign- ments (at the end of the course, each
student will evaluate the contribution of each group member); and 4) in
lecture and class participation in class and lab discussions.

Prerequisite(s): Familiar with the basic statistical concepts such as mean,


standard deviation, normal distribution, t-distribution, confidence interval,
hypothesis testing, p-value, etc (Reference: Neil A. Weiss (2016),
Introductory Statistics, 10th ed). Previous knowledge of R is not required.

References:
• Textbook (REQUIRED): G. Shmueli, P. C. Bruce, I. Yahav, N.R. Patel,
K.C. Lichtendahl Jr. (2018), Data Mining for Business Analytics:
Concepts, Techniques and Applications in R, Wiley.

Additional References:
• Zuur, A.F., Ieno, E. N., Meesters, E. H.W.G. (2009) A Beginner’s Guide to R.
Springer.

Course Policies:

Class Presence and Participation: The participation grade depends on 1)


attendance, 2) contri- bution to group assignments (at the end of the
course, each student will evaluate the contribution of each group
member); and 3) in class participation in discussions.
Mini Projects and Final Project: Mini Projects write ups must be handed
in at the beginning of the class the day they are due. The final project will
be handed in at the beginning of the last day of class before the
presentation.

Facultad de Administración – Universidad de los Andes


Calle 21 No. 1-20. Edificio SD, código postal: 111711. Bogotá - Colombia. | Conmutador: (571) 339 49 49/99 |
Línea directa: (571) 332 4555 | http://administracion.uniandes.edu.co | Correo electrónico: administracion@uniandes.edu.co

Universidad de los Andes | Vigilada Mineducación. Reconocimiento como Universidad: Decreto 1297 del 30 de mayo de 1964. Reconocimiento
personería jurídica: Resolución 28 del 23 de febrero de 1949 Minjusticia.
Contribution to group assignments: In the last day of class, you will
complete a peer-evaluation of the contribution from each member of
your group (including yourself) to the four group assignments. This
evaluation will be taken into account in the evaluation for the two group
assignments.
Quizzes: There are tentatively 3 quizzes. The content of the quizzes will
be based on the topic that will be covered either in the current lecture or
previous lecture.
Reading Ahead: I expect you all to read the material ahead of time, before
class when assigned. This will help you to follow lectures, ask questions
and do well in quizzes.
Zero Tolerance of Cheating and Plagiarism: Plagiarism means using
words, ideas, or arguments from another person or source without citation.
Cite all sources consulted to any extent (including material from the
internet), whether or not assigned and whether or not quoted directly. Any
form of cheating will immediately earn you a failing grade for the entire
course.

Facultad de Administración – Universidad de los Andes


Calle 21 No. 1-20. Edificio SD, código postal: 111711. Bogotá - Colombia. | Conmutador: (571) 339 49 49/99 |
Línea directa: (571) 332 4555 | http://administracion.uniandes.edu.co | Correo electrónico: administracion@uniandes.edu.co

Universidad de los Andes | Vigilada Mineducación. Reconocimiento como Universidad: Decreto 1297 del 30 de mayo de 1964. Reconocimiento
personería jurídica: Resolución 28 del 23 de febrero de 1949 Minjusticia.

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