CH 5

In the Cabela's case study, the SAS/Teradata solution enabled the direct marketer to better identify likely customers and market to them based mostly on external data sources.

The cost of data storage has plummeted recently, making data mining feasible for more firms.

Data mining can be very useful in detecting patterns such as credit card fraud, but is of little help in improving sales.

The entire focus of the predictive analytics system in the Infinity P&C case was on detecting and handling fraudulent claims for the company's benefit.

If using a mining analogy, "knowledge mining" would be a more appropriate term than "data mining."

Data mining requires specialized data analysts to ask ad hoc questions and obtain answers quickly from the system.

Ratio data is a type of categorical data.

Interval data is a type of numerical data.

In the Memphis Police Department case study, predictive analytics helped to identify the best schedule for officers in order to pay the least overtime.

In data mining, classification models help in prediction.