Machine Learning: The use of algorithms that can learn from and make
predictions on data, as opposed to traditional programing with
instructions.
• Related to Data Mining, Pattern Recognition, statistical learning, etc.
• Supervised Vs Unsupervised Learning
• Supervised Learning: Task of creating a function/relationship from training data which
has one or more explicit output (dependant) variables. Also, indicated as data that is
labelled. This can then be used to map new instances of the inputs.
• Unsupervised Learning: Task of creating patterns from data which have no explicit
measure or signal guiding us. The data is unlabelled
• Semi-supervised Learning
Machine Learning
In Supervised Learning
• Problem type: Regression versus Classification
• Objective: Prediction versus Interpretation
Unsupervised Learning
• Clustering
• Association Rule Mining
How Prediction Works
Regression and Prediction
Regression Analysis is the study of relationships between variables
• Going beyond categorical variables
• Model based relationship (linear and non-linear)
• Useful towards interpretation and prediction
Examples:
• Relationship between speed and fuel efficiency of a Truck; Operating drill speed and soil/stone
density affect on rate of drill
• How do wages of employees get affected with experience, education, promotions, etc.
• How does sales revenue get affected as a function advertising expenses, competitors
advertisements, etc.
• How does the price of a property get affected by square footage, distance from city centre, etc.
• How does the current price of a currency exchange rate depend on its past values
Categorizations, nomenclature and concepts
Linear versus non-linear Simple versus
multiple
Correlations
• Regression and Prediction
Regression and Prediction in action