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updated to include work that has appeared in the last few years, as well as to reflect the change in emphasis when a new topic gained importance.

I would like to thank all my colleagues all over the world who used the first edition of the book for their classes and who sent me support, encouragement, and suggestions to put together this revised version. My sincere thanks are due to all my colleagues and students in the Data Mining Lab and Computer Science Department for their reviews of this edition, and numerous helpful suggestions. Special thanks go to graduate students Brent Wenerstrom, Chamila Walgampaya, and Wael Emara for patience in proofreading this new edition and for useful discussions about the content of new chapters, numerous corrections, and additions. To Dr. Joung Woo Ryu, who helped me enormously in the preparation of the final version of the text and all additional figures and tables, I would like to express my deepest gratitude.

I believe this book can serve as a valuable guide to the field for undergraduate, graduate students, researchers, and practitioners. I hope that the wide range of topics covered will allow readers to appreciate the extent of the impact of data mining on modern business, science, even the entire society.

MEHMED KANTARDZIC

Louisville

July 2011

PREFACE TO THE FIRST EDITION

The modern technologies of computers, networks, and sensors have made data collection and organization an almost effortless task. However, the captured data need to be converted into information and knowledge from recorded data to become useful. Traditionally, the task of extracting useful information from recorded data has been performed by analysts; however, the increasing volume of data in modern businesses and sciences calls for computer-based methods for this task. As data sets have grown in size and complexity, so there has been an inevitable shift away from direct hands-on data analysis toward indirect, automatic data analysis in which the analyst works via more complex and sophisticated tools. The entire process of applying computer-based methodology, including new techniques for knowledge discovery from data, is often called data mining.

The importance of data mining arises from the fact that the modern world is a data-driven world. We are surrounded by data, numerical and otherwise, which must be analyzed and processed to convert it into information that informs, instructs, answers, or otherwise aids understanding and decision making. In the age of the Internet, intranets, data warehouses, and data marts, the fundamental paradigms of classical data analysis are ripe for changes. Very large collections of data—millions or even hundred of millions of individual records—are now being stored into centralized data warehouses, allowing analysts to make use of powerful data mining methods to examine data more comprehensively. The quantity of such data is huge and growing, the number of sources is effectively unlimited, and the range of areas covered is vast: industrial, commercial, financial, and scientific activities are all generating such data.

The new discipline of data mining has developed especially to extract valuable information from such huge data sets. In recent years there has been an explosive growth of methods for discovering new knowledge from raw data. This is not surprising given the proliferation of low-cost computers (for implementing such methods in software), low-cost sensors, communications, and database technology (for collecting and storing data), and highly computer-literate application experts who can pose “interesting” and “useful” application problems.

Data-mining technology is currently a hot favorite in the hands of decision makers as it can provide valuable hidden business and scientific “intelligence” from large amount of historical data. It should be remembered, however, that fundamentally, data mining is not a new technology. The concept of extracting information and knowledge discovery from recorded data is a well-established concept in scientific and medical studies. What is new is the convergence of several disciplines and corresponding technologies that have created a unique opportunity for data mining in scientific and corporate world.

The origin of this book was a wish to have a single introductory source to which we could direct students, rather than having to direct them to multiple sources. However, it soon became apparent that a wide interest existed, and potential readers other than our students would appreciate a compilation of some of the most important methods, tools, and algorithms in data mining. Such readers include people from a wide variety of backgrounds and positions, who find themselves confronted by the need to make sense of large amount of raw data. This book can be used by a wide range of readers, from students wishing to learn about basic processes and techniques in data mining to analysts and programmers who will be engaged directly in interdisciplinary teams for selected data mining applications. This book reviews state-of-the-art techniques for analyzing enormous quantities of raw data in a high-dimensional data spaces to extract new information useful in decision-making processes. Most of the definitions, classifications, and explanations of the techniques covered in this book are not new, and they are presented in references at the end of the book. One of the author’s main goals was to concentrate on a systematic and balanced approach to all phases of a data mining process, and present them with sufficient illustrative examples. We expect that carefully prepared examples should give the reader additional arguments and guidelines in the selection and structuring of techniques and tools for his or her own data mining applications. A better understanding of the implementational details for most of the introduced techniques will help challenge the reader to build his or her own tools or to improve applied methods and techniques.

Teaching in data mining has to have emphasis on the concepts and properties of the applied methods, rather than on the mechanical details of how to apply different data mining tools. Despite all of their attractive “bells and whistles,” computer-based tools alone will never provide the entire solution. There will always be the need for the practitioner to make important decisions regarding how the whole process will be designed, and how and which tools will be employed. Obtaining a deeper

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