Question

Discuss in what areas of your organization, or an organization you are familiar with, should conduct association analysis. With what data objects should the organization attempt to discover relationships to other data objects. What would be the business benefits of uncovering these relationships?

Answer 1

Solution: The process of discovering interesting relationships among data items hidden in large datasets is known as association analysis. These relationships can be framed as association rules which may further assist the organization as well as the clients to get the desired data according to their wants and needs. This is one of the most important methods which is used to analyze the transactional data in order to identify the relationship or the association between the data items that appear in the transactional data together. For example, let us consider the example given below:

1   {Bread, Milk}
2   {Bread, Milk, Diapers, Beer}
3   {Bread, Milk, Diapers, Cola}
4   {Bread, Diapers, Beer, Eggs}
5   {Milk, Diapers, Beer, Cola}

From the transactional data given above, following association rule can be extracted {Milk, Diaper}→{Beer}. Let us understand what does this rule means or what does it interpret. This rule suggests that the persons that bought Milk and Diaper together also bought Beer. So in this way, it is a form of Data Mining technique that may help the organization to build a recommendation system on the basis of these association rules which in turn, leads to an improved user experience to the customers of that organization. So basically association analysis or Association Rule learning helps big organizations to perform decision making in order to make extra profit in the market by knowing the customer preferences, on the other hand, it also helps the customers to have a better understanding of the product that they are buying from any organization which leads to a better user experince and a good reputation to the organization.

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