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RUBYGARAGE2017
TECHNOLOGYMATTERS
What It Is And How It Works
Machine Learning
Volodymyr Vorobiov
Software Development Consultant at RubyGarage
Machine learning is a subset of artificial
intelligence whose goalis to give computers
the ability to teach themselves, whereas
artificial intelligence is a general concept
of smart machines.
In other words, artificial intelligence is
implemented through machine learning or
- to be more precise
- through machine learning algorithms.
RUBYGARAGE2017
TECHNOLOGYMATTERS
artificial
intelligence
TEACH YOUR COMPUTER
EXAMPLES OF
HOW MACHINE LEARNING
IS USED IN THE REAL
WORLD
RUBYGARAGE2017
TECHNOLOGYMATTERS
- Facial recognition
- Voice recognition
- Text recognition
- Diagnostics into medicine,
- Self-driving cars
- Robots behavior adjustment
- Ads targeting,
- Predictions in financial trading
- Virtual and augmented reality
- Astronomy and space ???
The 21st century is the age of data.
It’s literally everywhere. In fact,
there has been an exponential
growth in the volume of data over
the past decade; the total amount
of data doubles every two years.
Most of it, however, isn’t used.
Huge volumes of data can be tagged,
structured, and analyzed,
revealing a lot of valuable information.
Only machine learning algorithms
can easily cope with this task.
RUBYGARAGE2017
TECHNOLOGYMATTERS
WHY THE FUTURE BELONGS TO MACHINE LEARNING
RUBYGARAGE2017
TECHNOLOGYMATTERS
HOW MACHINE LEARNING WORKS
Preprocessing Learinng Evaluation Prediction
Labels
Raw
Data
Labels
Labels
Final Model New DataTraining Dataset
Test Dataset
Learning
Algorithm
(putting data into
the necessary shape)
(creating a model with
the help of training data)
(model assessment
using test data)
application of the model)
TOOLS
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TECHNOLOGYMATTERS
- Python
- Pandas - Powerful data analysis library for Python
Pandas is a powerful data analysis Python library that provides flexible and fast data structures
for processing “relational” or “labeled” data. This is a fundamental data analysis toolkit
in Python.
- Scikit-learn - Machine Learning in Python
These are simple and effective open-source tools for data mining and analysis.
- Statsmodels
This is a Python module providing functions and classes to estimate different statistical models
as well as to conduct tests and explore statistical data. The Statsmodels module offers a
comprehensive list of result statistics.
- Matplotlib
Matplotlib is a Python 2D plotting library that releases publication quality figures in multiple
formats and interactive environments in different platforms.
The quality of the data and the amount of useful information that it
contains are key factors that determine how well a machine learning
algorithm can learn. Therefore, it is absolutely critical that we make
sure to examine and preprocess a dataset before we feed it to a learning algorithm.
- Removing and imputing missing values from the dataset
- Getting categorical data into shape for machine learning algorithms
- Selecting relevant features for the model construction
RUBYGARAGE2017
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DATA PREPROCESSING
DATA PREPROCESSING DATASET PRESENTATION
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Independent variables Dependent variables
IMPORTING THE DATASET
IMPORTING THE DATASET
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DEALING WITH MISSING DATA
Most computational tools are unable to handle such missing values
or would produce unpredictable results if we simply ignored them.
Therefore, it is crucial that we take care of those missing values
before we proceed with further analyses.
- Eliminating samples or features with missing values
The easiest solution to this problem is simply to remove samples with missing
values from a dataset.
However, this seemingly handy approach has a number of drawbacks.
For example, removing too many of such samples is likely to compromise
the quality of the analysis.
- Imputing missing values
The solution is to use various interpolation techniques that help to “guess”
the missing values from other samples in a dataset.
RUBYGARAGE2017
TECHNOLOGYMATTERS
DEALING WITH MISSING DATA
IMPUTING MISSING VALUES
IMPUTING MISSING VALUES RESULTS
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TECHNOLOGYMATTERS
HANDLING CATEGORICAL DATA
ENCODE LABELS
ENCODE LABELS RESULTS
RUBYGARAGE2017
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DUMMY VARIABLES
DUMMY VARIABLES
DUMMY VARIABLES RESULTS
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DUMMY VARIABLE TRAP
PARTITIONING A DATASET INTO TRAINING AND TEST SETS
TRAINING AND TEST SETS RESULTS
BRINGING FEATURES ONTO THE SAME SCALE
SAME SCALE RESULTS
TRAINING AND SELECTING A PREDICTIVE MODEL
RUBYGARAGE2017
TECHNOLOGYMATTERS
- Supervised learning
- Regression
- Classification
- Unsupervised learning
- Clustering
- Dimensionality Reduction
- Reinforcement Learning
- Association Rule Learning
- Natural Language Processing
- Deep Learning
- Model Selection
SUPERVISED LEARNING
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For making predictions about the future
Regression
For predicting continuous outcomes
Classification
For predicting class labels
REGRESSION
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Regression models (both linear and non-linear) are used for predicting a real value,
like salary for example. If your independent variable is time,
then you are forecasting future values, otherwise your model is predicting
present but unknown values.
SIMPLE LINEAR REGRESSION
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y
x
Constant Coefficent
Dependent variable (DV) Independent variable (IV)
y = b + b*x1 10
DATASET PRESENTATION. EXPERIENCE AND SALARY.
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SIMPLE LINEAR REGRESSION TRAINING
SIMPLE LINEAR REGRESSION TRAINING
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MULTIPLE LINEAR REGRESSION
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Constant Coefficent
Dependent variable (DV) Independent variable (IVs)
y = b + b*x + b*x ... + b*x1 1 2 2 n n0
DATASET PRESENTATION. INVESTMENT FUND STATISTIC.
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MULTIPLE LINEAR REGRESSION TRAINING
EVALUATING REGRESSION MODELS PERFORMANCE
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1. All-in
2. Backward Elimination
3. Forward Selection
4. Bidirectional Elimination
5. Score Comparison
Stepwise
Regression
BACKWARD ELIMINATION
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STEP 1: Select a significance level to stay in the model (e.g. SL = 0.05)
STEP 2: Fit the full model with all possible predictors
STEP 3: Consider the predictor with the highest P-value. If P > SL, go to STEP 4, otherwise go to FIN
STEP 4: Remove the predictor
STEP 5: Fit model without this variable*
BACKWARD ELIMINATION TRAINING
BACKWARD ELIMINATION TRAINING STEP 1
BACKWARD ELIMINATION TRAINING STEP 4
EVALUATING PERFORMANCE R-SQUARED
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SUM (y - y^) -> min
2
ii
Experience
Simple Linear Regression:
Salary ($)
y^i
yi
EVALUATING PERFORMANCE R-SQUARED
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SS = SUM (y - y^)
2
i ires
SS = SUM (y - y )
2
i avgtot
yavg
Experience
Simple Linear Regression:
Salary ($)
EVALUATING PERFORMANCE ADJUSTED R-SQUARED
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p - number of regressors
n - sample size
ADJUSTED R-SQUARED STEP 3
ADJUSTED R-SQUARED STEP 4
ADJUSTED R-SQUARED STEP 5
POLYNOMIAL REGRESSION
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y
x
y = b + b x + b x1 1 2 1
2
0
POLYNOMIAL REGRESSION. DATASET PRESENTATION.
BLUFFING DETECTOR
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POLYNOMIAL REGRESSION. FITTING THE DATASET
POLYNOMIAL REGRESSION. TRAINING THE MODEL
POLYNOMIAL REGRESSION RESULTS
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SUPPORT VECTOR REGRESSION BASED ON SUPPORT VECTOR
MACHINE
SUPPORT VECTOR REGRESSION. RESULTS.
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WHAT IF
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X1
X2
DECISION TREE REGRESSION
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Split 4
Split 2
Split 1
Split 3
200
20 40
170
X1
X2
1023
0.7-64.1300.5
65.7
Y
DECISION
TREE REGRESSION
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TECHNOLOGYMATTERS
X < 201
X < 2002
300.5 65.7 1023
-64.1 0.7
X < 1702
X < 401
yes no
yes no yes no
yes no
DECISION TREE REGRESSION TRAINING
DECISION TREE REGRESSION RESULT
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ENSEMBLE LEARNING. RANDOM FOREST REGRESSION.
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STEP 1: Pick at random K data points from the Training set.
STEP 2: Build the Decision Tree associated to these K data points.
STEP 3: Choose the number Ntree of trees you want to build and repeat STEPS 1 & 2
STEP 4: For a new data point, make each one of your Ntree trees predict the value of Y
to for the data point in question, and assign the new data point the average across
all of the predicted Y values.
RANDOM FOREST REGRESSION TRAINING
RANDOM FOREST REGRESSION RESULT
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REGRESSION MODELS. PROS AND CONS.
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CLASSIFICATION
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Unlike regression where you predict a continuous number,
you use classification to predict a category.
There is a wide variety of classification applications from medicine to marketing.
LOGISTIC REGRESSION
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TECHNOLOGYMATTERS
This is new:
Action (Y/N)
Age
We know this:
Salary ($)
Experience
y = b0 + b1*x
LOGISTIC REGRESSION
RUBYGARAGE2017
TECHNOLOGYMATTERS
Action (Y/N) Action (Y/N)
Age Age
LOGISTIC REGRESSION
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LOGISTIC REGRESSION
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LOGISTIC REGRESSION
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LOGISTIC REGRESSION PREDICTION
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DATASET PRESENTATION. SOCIAL NETWORK ADS.
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LOGISTIC REGRESSION. PREPROCESSING
LOGISTIC REGRESSION. TRAINING
LOGISTIC REGRESSION. TRAINING SET RESULTS
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TECHNOLOGYMATTERS
LOGISTIC REGRESSION. TEST SET RESULTS.
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K-NEAREST NEIGHBORS
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K-NEAREST NEIGHBORS
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STEP 1: Choose the number K of neighbors
STEP 2: Take the K nearest neighbors of the new data point, according to the Euclidean distance
STEP 3: Among these K neighbors, count the number of data points in each category
STEP 4: Assign the new data point to the category where you counted the most neighbors
Your Model is Ready
K-NEAREST NEIGHBORS
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K-NEAREST NEIGHBORS
RUBYGARAGE2017
TECHNOLOGYMATTERS
Category 1: 3 neighbors
Category 2: 2 neighbors
K-NEAREST NEIGHBORS. TRAINING
K-NEAREST NEIGHBORS. TRAINING SET RESULTS
RUBYGARAGE2017
TECHNOLOGYMATTERS
K-NEAREST NEIGHBORS. TEST SET RESULTS
RUBYGARAGE2017
TECHNOLOGYMATTERS
SUPPORT VECTOR MACHINES
RUBYGARAGE2017
TECHNOLOGYMATTERS
SUPPORT VECTOR MACHINES TRAINING
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TECHNOLOGYMATTERS
SUPPORT VECTOR MACHINES. TRAINING SET RESULTS.
RUBYGARAGE2017
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SUPPORT VECTOR MACHINES. TEST SET RESULTS.
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KERNEL SVM
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KERNEL SVM
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KERNEL SVM
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KERNEL SVM
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KERNEL SVM
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KERNEL SVM
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KERNEL SVM
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KERNEL SVM
KERNEL SVM TRAINING
NAIVE BAYES. TRAINING SET RESULTS.
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NAIVE BAYES. TEST SET RESULTS.
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NAIVE BAYES
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Bayes Theorem
DRIVER OR WAALKER.
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NAIVE BAYES. BAYES THEOREM. WALKS.
RUBYGARAGE2017
TECHNOLOGYMATTERS
NAIVE BAYES. BAYES THEOREM. DRIVES.
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NAIVE BAYES. P(WALKS).
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NAIVE BAYES. P(X).
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TECHNOLOGYMATTERS
NAIVE BAYES. P(X|WALKS).
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TECHNOLOGYMATTERS
NAIVE BAYES. P(WALKS|X).
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TECHNOLOGYMATTERS
NAIVE BAYES. P(DRIVES|X).
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NAIVE BAYES
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TECHNOLOGYMATTERS
NAIVE BAYES. NEW WALKER.
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NAIVE BAYES. TRAINING.
NAIVE BAYES. TRAINING SET RESULTS.
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NAIVE BAYES. TEST SET RESULTS.
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DECISION TREE CLASSIFICATION
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DECISION TREE CLASSIFICATION. TRAINING.
DECISION TREE CLASSIFICATION. TRAINING SET RESULTS.
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DECISION TREE CLASSIFICATION. TEST SET RESULTS.
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TECHNOLOGYMATTERS
RUBYGARAGE2017
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RANDOM FOREST CLASSIFICATION
STEP 1: Pick at random K data points from the Training set.
STEP 2: Build the Decision Tree associated to these K data points.
STEP 3: Choose the number Ntree of trees you want to build and repeat STEPS 1 & 2
STEP 4: For a new data point, make each one of your Ntree trees predict the category to
which the data point belongs, and assign the new data point to the category that wins
the majority vote.
RANDOM FOREST CLASSIFICATION. TRAINING
RUBYGARAGE2017
TECHNOLOGYMATTERS
RANDOM FOREST CLASSIFICATION. TRAINING SET RESULTS
RUBYGARAGE2017
TECHNOLOGYMATTERS
RANDOM FOREST CLASSIFICATION. TEST SET RESULTS.
EVALUATING CLASSIFICATION MODELS PERFORMANCE.
FALSE POSITIVES & FALSE NEGATIVES.
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TECHNOLOGYMATTERS
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EVALUATING CLASSIFICATION MODELS PERFORMANCE.
CONFUSION MATRIX.
CLASSIFICATION MODELS. PROS AND CONS.
RUBYGARAGE2017
TECHNOLOGYMATTERS
CLUSTERING
RUBYGARAGE2017
TECHNOLOGYMATTERS
Clustering is similar to classification, but the basis is different.
In Clustering you don’t know what you are looking for,
and you are trying to identify some segments or clusters in your data.
When you use clustering algorithms on your dataset,
unexpected things can suddenly pop up like structures,
clusters and groupings you would have never thought of otherwise.
K-MEANS CLUSTERING
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K-MEANS CLUSTERING
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TECHNOLOGYMATTERS
STEP 1: Choose the number K of clusters
STEP 2: Select at random K points, the centroids (not necessarily from your dataset)
STEP 3: Assign each data point to the closest centroid -> That forms K clusters
STEP 4: Compute and place the new centroid of each cluster
STEP 5: Reassign each data point to the new closest centroid.
If any reassignment took place, go to STEP 4, otherwise go to FIN.
Your Model is Ready
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K-MEANS CLUSTERING
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K-MEANS CLUSTERING
K-MEANS CLUSTERING
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K-MEANS CLUSTERING
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K-MEANS CLUSTERING
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K-MEANS CLUSTERING
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K-MEANS CLUSTERING
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K-MEANS CLUSTERING
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K-MEANS CLUSTERING RANDOM INITIALIZATION PROBLEM
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K-MEANS CLUSTERING RANDOM INITIALIZATION PROBLEM
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K-MEANS CLUSTERING RANDOM INITIALIZATION PROBLEM
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K-MEANS CLUSTERING RANDOM INITIALIZATION PROBLEM
K-MEANS SELECTING THE NUMBER OF CLUSTERS
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K-MEANS SELECTING THE NUMBER OF CLUSTERS
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DATASET PRESENTATION. MALL CUSTOMERS.
RUBYGARAGE2017
TECHNOLOGYMATTERS
K-MEANS. TRAINING. OPTIMAL NUMBER OF CLUSTERS.
K-MEANS. OPTIMAL NUMBER OF CLUSTERS RESULTS.
RUBYGARAGE2017
TECHNOLOGYMATTERS
K-MEANS TRAINING
K-MEANS. RESULT
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HIERARCHICAL CLUSTERING
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RUBYGARAGE2017
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HIERARCHICAL CLUSTERING AGGLOMERATIVE
STEP 1: Make each data point a single-point cluster That forms N clusters
STEP 2: Take the two closest data points and make them one cluster That forms N-1 clusters
STEP 3: Take the two closest clusters and make them one cluster That forms N-2 clusters
STEP 4: Repeat STEP 3 until there is only one cluster
FIN
HIERARCHICAL CLUSTERING AGGLOMERATIVE
RUBYGARAGE2017
TECHNOLOGYMATTERS
HIERARCHICAL CLUSTERING AGGLOMERATIVE
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HIERARCHICAL CLUSTERING AGGLOMERATIVE
RUBYGARAGE2017
TECHNOLOGYMATTERS
HIERARCHICAL CLUSTERING AGGLOMERATIVE
RUBYGARAGE2017
TECHNOLOGYMATTERS
HIERARCHICAL CLUSTERING AGGLOMERATIVE
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TECHNOLOGYMATTERS
HIERARCHICAL CLUSTERING AGGLOMERATIVE
RUBYGARAGE2017
TECHNOLOGYMATTERS
HIERARCHICAL CLUSTERING AGGLOMERATIVE
RUBYGARAGE2017
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HIERARCHICAL CLUSTERING AGGLOMERATIVE
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HIERARCHICAL CLUSTERING DENDROGRAMS
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HIERARCHICAL CLUSTERING DENDROGRAMS
RUBYGARAGE2017
TECHNOLOGYMATTERS
HIERARCHICAL CLUSTERING DENDROGRAMS
RUBYGARAGE2017
TECHNOLOGYMATTERS
HIERARCHICAL CLUSTERING DENDROGRAMS
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HIERARCHICAL CLUSTERING DENDROGRAMS
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4 clusters
DENDROGRAMS OPTIMAL NUMBER OF CLUSTERS
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DENDROGRAMS OPTIMAL NUMBER OF CLUSTERS
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DENDROGRAM. FINDING THE OPTIMAL NUMBER
OF CLUSTERS.
DENDROGRAM. RESULTS
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TECHNOLOGYMATTERS
HIERARCHICAL CLUSTERING. TRAINING.
HIERARCHICAL CLUSTERING RESULT
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TECHNOLOGYMATTERS
CLUSTERING MODELS. PROS AND CONS
RUBYGARAGE2017
TECHNOLOGYMATTERS
REINFORCEMENT LEARNING
Reinforcement Learning is a branch of Machine Learning,
also called Online Learning. It is used to solve interacting
problems where the data observed up to time t is considered
to decide which action to take at time t + 1.
It is also used for Artificial Intelligence when training machines to perform
tasks such as walking. Desired outcomes provide the AI with reward,
undesired with punishment. Machines learn through trial and error.
RUBYGARAGE2017
TECHNOLOGYMATTERS
THE MULTI-ARMED BANDIT PROBLEM
Hot to bet to maximize your return
RUBYGARAGE2017
TECHNOLOGYMATTERS
THE MULTI-ARMED BANDIT PROBLEM
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TECHNOLOGYMATTERS
THE MULTI-ARMED BANDIT PROBLEM
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UPPER CONFIDENCE BOUND ALGORITHM
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UPPER CONFIDENCE BOUND ALGORITHM
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UPPER CONFIDENCE BOUND ALGORITHM
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UPPER CONFIDENCE BOUND ALGORITHM
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UPPER CONFIDENCE BOUND ALGORITHM
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UPPER CONFIDENCE BOUND ALGORITHM
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UPPER CONFIDENCE BOUND ALGORITHM
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RANDOM SELECTION
RANDOM SELECTION. RESULTS.
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UPPER CONFIDENCE BOUND. TRAINING.
UPPER CONFIDENCE BOUND. RESULTS.
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THOMPSON SAMPLING ALGORITHM
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BAYESIAN INFERENCE
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BAYESIAN INFERENCE. EXPLANATION.
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CREATING DISTRIBUTION BASED ON AN INITIAL DATA
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PULLING RANDOM VALUES FROM DISTRIBUTIONS
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ADJUSTING THE PERCEPTION OF THE WORLD
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THE FINAL MODEL
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61
TECHNOLOGYMATTERS
UCB VS THOMPSON SAMPLING
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THOMPSON SAMPLING ALGORITHM. TRAINING.
THOMPSON SAMPLING ALGORITHM. RESULTS.
RUBYGARAGE2017
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NATURAL LANGUAGE PROCESSING
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Natural Language Processing (or NLP) is applying Machine Learning
models to text and language.
Teaching machines to understand what is said in spoken
and written word is the focus of Natural.
NATURAL LANGUAGE PROCESSING
RUBYGARAGE2017
TECHNOLOGYMATTERS
Natural Language Processing (or NLP) is applying Machine Learning
models to text and language.
Teaching machines to understand what is said in spoken
and written word is the focus of Natural.
NATURAL LANGUAGE PROCESSING
RUBYGARAGE2017
TECHNOLOGYMATTERS
Language Processing.
Whenever you dictate something into your iPhone / Android device
that is then converted to text, that’s an NLP algorithm in action.
NATURAL LANGUAGE PROCESSING
RUBYGARAGE2017
TECHNOLOGYMATTERS
You can use NLP on an article to predict some
categories of the articles you are trying to segment.
You can use NLP on a book to predict the genre of the book.
NATURAL LANGUAGE PROCESSING
RUBYGARAGE2017
TECHNOLOGYMATTERS
A very well-known model in NLP is the Bag of Words model.
It is a model used to preprocess the texts to classify before
fitting the classification algorithms on the observations
containing the texts.
DATASET PRESENTATION. RESTAURANT REVIEWS.
RUBYGARAGE2017
TECHNOLOGYMATTERS
NLP. TRAINING. IMPORTING THE DATASET
AND CLEANING THE TEXTS.
NLP. TRAINING. CLEANING THE TEXTS. RESULTS.
NLP. TRAINING. CREATING THE BAG OF WORDS MODEL.
NLP. CREATING THE BAG OF WORDS MODEL.
NLP. TRAINING. SPLITTING THE DATASET
INTO THE TRAINING SET AND TEST SET.
NLP. TRAINING. FITTING NAIVE BAYES TO THE TRAINING SET.
NLP. TRAINING. PREDICTING AND MAKING
THE CONFUSION MATRIX.
NLP. CONFUSION MATRIX. RESULTS.
THE NEURON
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HOW DO NEURAL NETWORKS LEARN?
RUBYGARAGE2017
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NEURAL NETWORKS
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TECHNOLOGYMATTERS
RUBYGARAGE2017
TECHNOLOGYMATTERS
TO BE
CONTINUED

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