Glossary of Terms

Glossary of Terms

Analytical model A structure and process for analyzing a dataset. For example, a decision tree is a model for the classification of a dataset.

Artificial neural networks Non-linear predictive models that learn through training and resemble biological neural networks in structure.

Classification The process of dividing a dataset into mutually exclusive groups such that the members of each group are as “close” as possible to one another, and different groups are as “far” as possible from one another, where distance is measured with respect to specific variable(s) you are trying to predict. For example, a typical classification problem is to divide a database of companies into groups

that are as homogeneous as possible with respect to a creditworthiness variable with values “Good” and “Bad.”

Clustering The process of dividing a dataset into mutually exclusive groups such that the members of each group are as “close” as possible to one another, and different groups are as “far” as possible from one another, where distance is measured with respect to all available variables.

Data cleansing The process of ensuring that all values in a dataset are consistent and correctly recorded.

Data mining The extraction of hidden predictive information from large databases.

Data navigation The process of viewing different dimensions, slices, and levels of detail of a multidimensional database. See OLAP.

Data visualization The visual interpretation of complex relationships in multidimensional data.

Data warehouse A system for storing and delivering massive quantities of data.

Decision tree A tree-shaped structure that represents a set of decisions.

These decisions generate rules for the classification of a dataset.

Genetic algorithms Optimization techniques that use processes such as genetic combination, mutation, and natural selection in a design based on the concepts of natural evolution.

Logistic regression A linear regression that predicts the proportions of a categorical target variable, such as type of customer, in a population.

Multidimensional database A database designed for on-line analytical processing.

Structured as a multidimensional hypercube with one axis per dimension.

Multiprocessor computer A computer that includes multiple processors connected by a network. See parallel processing.

OLAP On-line analytical processing. Refers to array-oriented database applications that allow users to view, navigate through, manipulate, and analyze multidimensional databases.

Outlier A data item whose value falls outside the bounds enclosing most of the other corresponding values in the sample. May indicate anomalous data. Should be examined carefully; may carry important information.

Parallel processing The coordinated use of multiple processors to perform computational tasks. Parallel processing can occur on a multiprocessor computer or on a network of workstations or PCs.

Retrospective data analysis Data analysis that provides insights into trends, behaviors, or events that have already occurred.

Time series analysis The analysis of a sequence of measurements made at specified time intervals. Time is usually the dominating dimension of the data.