Posts tagged ‘correlation’
Terence’s last post was about correlation – a powerful tool that requires an easy-to-use UI to be effective along with some serious number crunching backing it up. I made a quick demo of our recently upgraded “insight discovery” interface showing off how to analyze correlations with the PAF. Click below to watch. Let us know what you think of it.
There is an apocryphal story that is often told to illustrate data mining concepts. The story is about beer and diaper sales and usually goes along the lines of:
|INSERT MAJOR RETAILER NAME| found on |INSERT DAY OF THE WEEK| that beer and diaper sales were strongly correlated. Once noticed on |INSERT BI TOOL OF CHOICE|, it was found |PICK ONE|:
- That diapers are too heavy for recently pregnant women so they ask their husbands to pick them up coming home from work and since hubby is off the clock and ready to get his drink on, he also picks up beer.
- That a diaper emergency occurs fairly late in the evening and the husband is sent out while the new mother cares for the baby. Being annoyed, he also picks up a 12 pack to relax.
- That |INSERT SOME EQUALLY GROSS STEREOTYPICAL ASSUMPTION ABOUT THE U.S. WORKING CLASS PARENT|.
The brilliant analyst at |SAME MAJOR RETAILER AS ABOVE| intuits that a simple relocation of beer next to diapers will lead to more purchases of beer and beer sales improve by |INSERT HIGHER %|.