Predictive Data Mining

The term Predictive Data Mining is usually applied to identify data mining projects with the goal to identify a statistical or neural network model or set of models that can be used to predict some response of interest. For example, a credit card company may want to engage in predictive data mining to derive a (trained) model or set of models (e.g., neural networks, meta-learner) that can quickly identify transactions that have a high probability of being fraudulent. Other types of data mining projects may be more exploratory in nature (e.g., to identify cluster or segments of customers), in which case drill-down descriptive and exploratory methods would be applied. Data reduction is another possible objective for data mining (e.g., to aggregate or amalgamate the information in very large data sets into useful and manageable chunks).