Fundamentals of Machine Learning for Predictive Data Analytics Machine Learning for Predictive Data Analytics
What is Predictive Data Analytics? What is ML? How Does ML Work? Underfitting/ Summary
What is Predictive Data Analytics? What is Machine Learning?
How Does Machine Learning Work? What Can Go Wrong With ML?
The Predictive Data Analytics Project Lifecycle: Crisp-DM
Summary
What is Predictive Data Analytics? What is ML? How Does ML Work? Underfitting/ Summary
What is Predictive Data Analytics?
What is Predictive Data Analytics? What is ML? How Does ML Work? Underfitting/ Summary
Predictive Data Analytics encompasses the business and data processes and computational models that enable a business to make data-driven decisions.
What is Predictive Data Analytics? What is ML? How Does ML Work? Underfitting/ Summary
Figure: Predictive data analytics moving from data to insights to decisions.
What is Predictive Data Analytics? What is ML? How Does ML Work? Underfitting/ Summary
Example Applications:
Price Prediction Fraud Detection Dosage Prediction Risk Assessment Propensity modelling Diagnosis
Document Classification
…
What is Predictive Data Analytics? What is ML? How Does ML Work? Underfitting/ Summary
What is Machine Learning?
What is Predictive Data Analytics? What is ML? How Does ML Work? Underfitting/ Summary
(Supervised) Machine Learning techniques automatically learn a model of the relationship between a set of descriptive features and a target feature from a set of historical examples.
Figure: Using machine learning to induce a prediction model from a training dataset.
Figure: Using the model to make predictions for new query instances.
ID
1 2 3 4 5 6 7 8 9 10
OCCUPATION
industrial professional professional professional industrial industrial professional professional industrial industrial
LOAN-SALARY AGE RATIO
34 2.96 41 4.64 36 3.22 41 3.11 48 3.80 61 2.52 37 1.50 40 1.93 33 5.25 32 4.15
OUTCOME
repaid default default default default repaid repaid repaid default default
What is the relationship between the descriptive features (OCCUPATION, AGE, LOAN-SALARY RATIO) and the target feature (OUTCOME)?
What is Predictive Data Analytics?
What is ML? How Does ML Work? Underfitting/ Summary
if LOAN-SALARY RATIO > 3 then OUTCOME=’default’
else
OUTCOME=’repay’ end if
What is Predictive Data Analytics?
What is ML? How Does ML Work? Underfitting/ Summary
if LOAN-SALARY RATIO > 3 then OUTCOME=’default’
else
OUTCOME=’repay’ end if
This is an example of a prediction model
What is Predictive Data Analytics?
What is ML? How Does ML Work? Underfitting/ Summary
if LOAN-SALARY RATIO > 3 then OUTCOME=’default’
else
OUTCOME=’repay’ end if
This is an example of a prediction model
This is also an example of a consistent prediction model
What is Predictive Data Analytics?
What is ML? How Does ML Work? Underfitting/ Summary
if LOAN-SALARY RATIO > 3 then OUTCOME=’default’
else
OUTCOME=’repay’ end if
This is an example of a prediction model
This is also an example of a consistent prediction model
Notice that this model does not use all the features and the feature that it uses is a derived feature (in this case a ratio): feature design and feature selection are two important topics that we will return to again and again.
What is Predictive Data Analytics? What is ML? How Does ML Work? Underfitting/ Summary
What is the relationship between the descriptive features and the target feature (OUTCOME) in the following dataset?