Chapter 27 WAVELET METHODS IN DATA MINING Tao Li School of Computer Science Florida Intemtional University Miami, FL 331 99 taoli8cs.fiu.edu Sheng Ma Machine Learning for Systems IBM ZJ. Watson Research Center 19 Skyline Drive Hawthorne, NY 10532 shengma@us.ibm.com Mitsunori Ogihara Computer Science Department University of Rochester Rocheste~ NY 14627-0226 Abstract Recently there has been significant development in the use of wavelet methods in various Data Mining processes. This article presents general overview of their applications in Data Mining. It first presents a high-level data-mining framework in which the overall process is divided into smaller components. It reviews a p plications of wavelets for each component. It discusses the impact of wavelets on Data Mining research and outlines potential future research directions and applications. Keywords: Wavelet Transform, Data Management, Short Time Fourier Transform, Heisenberg's Uncertainty Principle, Discrete Wavelet Transform, Multiresolu-