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015) Machine Learning for Business: A Comprehensive Guide

Building Predictive Models for Success


Book Summary:

A comprehensive guide to utilizing machine learning to revolutionize businesses, with practical examples and code to build accurate predictive models.

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This book is a comprehensive guide to the fundamentals of machine learning, designed to help businesses capitalize on the power of predictive models. It covers topics such as data preparation, feature engineering, model selection, and evaluation, with practical examples and code snippets to implement these techniques. This book is written in a light and fun way and provides the tools and knowledge necessary to build accurate predictive models.

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Chapter 2: Data Preparation

Chapter Summary: This chapter focuses on the processes involved in preparing data for machine learning. It covers topics such as data collection, pre-processing, cleaning, feature engineering, and model selection.



(1) Understanding Data Preparation

Data preparation is a critical step in the machine learning process. It involves cleaning, transforming, and manipulating data to create a dataset that is suitable for analysis. Data preparation can involve tasks such as dealing with missing values, normalizing the data, and creating new features.

(2) Data Types

Before data can be prepared, it is important to understand the types of data that are present in the dataset. Common data types include numeric, categorical, and text. It is important to understand the characteristics of each data type in order to properly prepare the data.

(3) Missing Values

Missing values can have a significant impact on the accuracy of the model. It is important to understand the different ways in which missing values can be handled, such as imputation or dropping the feature altogether.

(4) Outliers

Outliers are values in the dataset that are significantly different from the rest of the data. It is important to identify and address outliers as they can have a significant impact on the performance of the model.

(5) Normalization

Normalization is a process of transforming the values in a dataset to a common scale, such as 0 to 1 or -1 to 1. This can help improve the accuracy of the model by removing any bias that may be present in the data.

(6) Feature Engineering

Feature engineering is the process of transforming raw data into features that can be used by the model. This can involve creating new features, combining existing features, or extracting features from text.

(7) Feature Selection

Feature selection is the process of selecting the most relevant features from a dataset in order to improve the accuracy of the model. This can involve using techniques such as correlation analysis, mutual information, or wrapper methods.

(8) Feature Transformation

Feature transformation is the process of transforming existing features in the dataset to create new features that can be used by the model. This can involve techniques such as principal component analysis or polynomial expansion.

(9) Encoding Categorical Features

Categorical features must be encoded in order for them to be used by the model. This can involve techniques such as one-hot encoding or label encoding.

(10) Data Splitting

Data splitting is the process of dividing the dataset into training, validation, and test sets. This is important in order to ensure that the model is evaluated properly and that it is not overfitted to the data.

(11) Data Augmentation

Data augmentation is the process of generating additional data from existing data. This can be useful in cases where there is limited data available, but it must be done carefully to ensure that the generated data is accurate.

(12) Feature Scaling

Feature scaling is the process of transforming the values in a dataset to a common range, such as 0 to 1 or -1 to 1. This is important in order to ensure that the model is not biased towards certain features.

(13) Model Selection

Model selection is the process of choosing the best model for the dataset. This can involve comparing different models based on their accuracy, complexity, or other metrics.

(14) Model Evaluation

Model evaluation is the process of assessing the performance of the model on unseen data. This can involve metrics such as accuracy, precision, recall, or other metrics.

(15) Model Tuning

Model tuning is the process of adjusting the hyperparameters of the model in order to improve its performance. This can involve techniques such as grid search or random search.

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