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What Is Market Basket Analysis?

Answer»

Market basket analysis is a DATA mining technique that determines which sets of products tend to be purchased together. A common technique uses conditional PROBABILITIES. In addition to the basic probability that an item will be purchased, three results are of particular interest:
Support -- the probability of TWO items being purchased together. Confidence -- the probability of a second item being purchased GIVEN that another item has been purchased. Lift -- calculated as confidence divided by a basic probability, this SHOWS the likelihood of a second item being purchased IF an item is purchased.

Market basket analysis is a data mining technique that determines which sets of products tend to be purchased together. A common technique uses conditional probabilities. In addition to the basic probability that an item will be purchased, three results are of particular interest:
Support -- the probability of two items being purchased together. Confidence -- the probability of a second item being purchased GIVEN that another item has been purchased. Lift -- calculated as confidence divided by a basic probability, this shows the likelihood of a second item being purchased IF an item is purchased.



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