Machine Learning

Machine Learning is a system of computer algorithms that can learn from example
through self-improvement without being explicitly coded by a programmer. Machine
learning is a part of artificial Intelligence which combines data with statistical tools to
predict an output which can be used to make actionable insights.
The breakthrough comes with the idea that a machine can singularly learn from the data
(i.e., example) to produce accurate results. Machine learning is closely related to data
mining and Bayesian predictive modeling. The machine receives data as input and uses
an algorithm to formulate answers.

A typical machine learning tasks are to provide a recommendation. For those who have
a Netflix account, all recommendations of movies or series are based on the user’s
historical data. Tech companies are using unsupervised learning to improve the user
experience with personalizing recommendation.

Machine learning is also used for a variety of tasks like fraud detection, predictive
maintenance, portfolio optimization, automatize task and so on.

Machine Learning vs. Traditional Programming

Traditional programming differs significantly from machine learning. In traditional
programming, a programmer code all the rules in consultation with an expert in the
industry for which software is being developed. Each rule is based on a logical
foundation; the machine will execute an output following the logical statement. When
the system grows complex, more rules need to be written. It can quickly become
unsustainable to maintain.
Traditional Programming
Machine learning is supposed to overcome this issue. The machine learns how the
input and output data are correlated and it writes a rule. The programmers do not need
to write new rules each time there is new data. The algorithms adapt in response to new
data and experiences to improve efficacy over time.

How does Machine Learning Work?

Now in this Machine learning basics for beginners tutorial, we will learn how Machine
Learning (ML) works:

Machine learning is the brain where all the learning takes place. The way the machine
learns is similar to the human being. Humans learn from experience. The more we
know, the more easily we can predict. By analogy, when we face an unknown situation,
the likelihood of success is lower than the known situation. Machines are trained the
same. To make an accurate prediction, the machine sees an example. When we give
the machine a similar example, it can figure out the outcome. However, like a human, if
its feed a previously unseen example, the machine has difficulties to predict.

The core objective of machine learning is the learning and inference. First of all, the
machine learns through the discovery of patterns. This discovery is made thanks to
the data. One crucial part of the data scientist is to choose carefully which data to
provide to the machine. The list of attributes used to solve a problem is called a feature
vector. You can think of a feature vector as a subset of data that is used to tackle a
problem.

The machine uses some fancy algorithms to simplify the reality and transform this
discovery into a model. Therefore, the learning stage is used to describe the data and
summarize it into a model.
For instance, the machine is trying to understand the relationship between the wage of
an individual and the likelihood to go to a fancy restaurant. It turns out the machine finds
a positive relationship between wage and going to a high-end restaurant: This is the
model

Inferring
When the model is built, it is possible to test how powerful it is on never-seen-before
data. The new data are transformed into a features vector, go through the model and
give a prediction. This is all the beautiful part of machine learning. There is no need to
update the rules or train again the model. You can use the model previously trained to
make inference on new data.

The life of Machine Learning programs is straightforward and can be summarized in the
following points:

1. Define a question
2. Collect data
3. Visualize data
4. Train algorithm
5. Test the Algorithm
6. Collect feedback
7. Refine the algorithm
8. Loop 4-7 until the results are satisfying
9. Use the model to make a prediction
Once the algorithm gets good at drawing the right conclusions, it applies that knowledge
to new sets of data.

Machine Learning Algorithms and where they are used?

Now in this Machine learning tutorial for beginners, we will learn where Machine
Learning (ML) algorithms are used:

Machine learning Algorithms

Machine learning can be grouped into two broad learning tasks: Supervised and
Unsupervised. There are many other algorithms

Supervised learning
An algorithm uses training data and feedback from humans to learn the relationship of
given inputs to a given output. For instance, a practitioner can use marketing expense
and weather forecast as input data to predict the sales of cans.

You can use supervised learning when the output data is known. The algorithm will
predict new data.

There are two categories of supervised learning:

 Classification task
 Regression task

Classification
Imagine you want to predict the gender of a customer for a commercial. You will start
gathering data on the height, weight, job, salary, purchasing basket, etc. from your
customer database. You know the gender of each of your customer, it can only be male
or female. The objective of the classifier will be to assign a probability of being a male or
a female (i.e., the label) based on the information (i.e., features you have collected).
When the model learned how to recognize male or female, you can use new data to
make a prediction. For instance, you just got new information from an unknown
customer, and you want to know if it is a male or female. If the classifier predicts male =
70%, it means the algorithm is sure at 70% that this customer is a male, and 30% it is a
female.

The label can be of two or more classes. The above Machine learning example has only
two classes, but if a classifier needs to predict object, it has dozens of classes (e.g.,
glass, table, shoes, etc. each object represents a class)

Regression
When the output is a continuous value, the task is a regression. For instance, a financial
analyst may need to forecast the value of a stock based on a range of feature like
equity, previous stock performances, and macroeconomics index. The system will be
trained to estimate the price of the stocks with the lowest possible error.

Algorithm Description Type

Linear Finds a way to correlate each feature to the output Regression
regression to help predict future values.
Logistic Extension of linear regression that’s used for Classification
regression classification tasks. The output variable 3is binary
(e.g., only black or white) rather than continuous
(e.g., an infinite list of potential colors)
Decision Highly interpretable classification or regression Regression
tree model that splits data-feature values into branches Classification
at decision nodes (e.g., if a feature is a color, each
possible color becomes a new branch) until a final
decision output is made
Naive The Bayesian method is a classification method that Regression
Bayes makes use of the Bayesian theorem. The theorem Classification
updates the prior knowledge of an event with the
independent probability of each feature that can
affect the event.
Support Support Vector Machine, or SVM, is typically used Regression (not
vector for the classification task. very common)
machine SVM algorithm finds a hyperplane that optimally Classification
divided the classes. It is best used with a non-linear
solver.
Random The algorithm is built upon a decision tree to Regression
forest improve the accuracy drastically. Random forest Classification
generates many times simple decision trees and
uses the ‘majority vote’ method to decide on which
label to return. For the classification task, the final
prediction will be the one with the most vote; while
for the regression task, the average prediction of all
 the trees is the final prediction.
AdaBoost Classification or regression technique that uses a Regression
multitude of models to come up with a decision but Classification
weighs them based on their accuracy in predicting
the outcome
Gradient- Gradient-boosting trees is a state-of-the-art Regression
boosting classification/regression technique. It is focusing on Classification
trees the error committed by the previous trees and tries
to correct it.

Unsupervised learning
In unsupervised learning, an algorithm explores input data without being given an
explicit output variable (e.g., explores customer demographic data to identify patterns)

You can use it when you do not know how to classify the data, and you want the
algorithm to find patterns and classify the data for you

Algorithm Description Type

Name
K-means Puts data into some groups (k) that each Clustering
clustering contains data with similar characteristics (as
determined by the model, not in advance by
humans)
Gaussian A generalization of k-means clustering that Clustering
mixture model provides more flexibility in the size and shape
of groups (clusters)
Hierarchical Splits clusters along a hierarchical tree to form Clustering
clustering a classification system.
Can be used for Cluster loyalty-card customer
Recommender Help to define the relevant data for making a Clustering
system recommendation.
PCA/T-SNE Mostly used to decrease the dimensionality of Dimension
the data. The algorithms reduce the number of Reduction
features to 3 or 4 vectors with the highest
variances.

How to Choose Machine Learning Algorithm

Now in this Machine learning basics tutorial, we will learn how to choose Machine
Learning (ML) algorithm:

There are plenty of machine learning algorithms. The choice of the algorithm is based
on the objective.

In the Machine learning example below, the task is to predict the type of flower among
the three varieties. The predictions are based on the length and the width of the petal.
The picture depicts the results of ten different algorithms. The picture on the top left is
the dataset. The data is classified into three categories: red, light blue and dark blue.
There are some groupings. For instance, from the second image, everything in the
upper left belongs to the red category, in the middle part, there is a mixture of
uncertainty and light blue while the bottom corresponds to the dark category. The other
images show different algorithms and how they try to classified the data.

Challenges and Limitations of Machine Learning

Now in this Machine learning tutorial, we will learn about the limitations of Machine
Learning:

The primary challenge of machine learning is the lack of data or the diversity in the
dataset. A machine cannot learn if there is no data available. Besides, a dataset with a
lack of diversity gives the machine a hard time. A machine needs to have heterogeneity
to learn meaningful insight. It is rare that an algorithm can extract information when
there are no or few variations. It is recommended to have at least 20 observations per
group to help the machine learn. This constraint leads to poor evaluation and prediction.

Application of Machine Learning

Now in this Machine learning tutorial, let’s learn the applications of Machine Learning:

Augmentation:

 Machine learning, which assists humans with their day-to-day tasks, personally
or commercially without having complete control of the output. Such machine
learning is used in different ways such as Virtual Assistant, Data analysis,
software solutions. The primary user is to reduce errors due to human bias.

Automation:

 Machine learning, which works entirely autonomously in any field without the
need for any human intervention. For example, robots performing the essential
process steps in manufacturing plants.
Finance Industry

 Machine learning is growing in popularity in the finance industry. Banks are

mainly using ML to find patterns inside the data but also to prevent fraud.

Government organization

 The government makes use of ML to manage public safety and utilities. Take the
example of China with the massive face recognition. The government uses
Artificial intelligence to prevent jaywalker.

Healthcare industry

 Healthcare was one of the first industry to use machine learning with image
detection.

Marketing

 Broad use of AI is done in marketing thanks to abundant access to data. Before

the age of mass data, researchers develop advanced mathematical tools like
Bayesian analysis to estimate the value of a customer. With the boom of data,
marketing department relies on AI to optimize the customer relationship and
marketing campaign.

Example of application of Machine Learning in Supply Chain

Machine learning gives terrific results for visual pattern recognition, opening up many
potential applications in physical inspection and maintenance across the entire supply
chain network.

Unsupervised learning can quickly search for comparable patterns in the diverse
dataset. In turn, the machine can perform quality inspection throughout the logistics
hub, shipment with damage and wear.

For instance, IBM’s Watson platform can determine shipping container damage. Watson
combines visual and systems-based data to track, report and make recommendations in
real-time.

In past year stock manager relies extensively on the primary method to evaluate and
forecast the inventory. When combining big data and machine learning, better
forecasting techniques have been implemented (an improvement of 20 to 30 % over
traditional forecasting tools). In term of sales, it means an increase of 2 to 3 % due to
the potential reduction in inventory costs.
Example of Machine Learning Google Car

For example, everybody knows the Google car. The car is full of lasers on the roof
which are telling it where it is regarding the surrounding area. It has radar in the front,
which is informing the car of the speed and motion of all the cars around it. It uses all of
that data to figure out not only how to drive the car but also to figure out and predict
what potential drivers around the car are going to do. What’s impressive is that the car
is processing almost a gigabyte a second of data.

Why is Machine Learning Important?

Machine learning is the best tool so far to analyze, understand and identify a pattern in
the data. One of the main ideas behind machine learning is that the computer can be
trained to automate tasks that would be exhaustive or impossible for a human being.
The clear breach from the traditional analysis is that machine learning can take
decisions with minimal human intervention.

Take the following example for this ML tutorial; a retail agent can estimate the price of a
house based on his own experience and his knowledge of the market.

A machine can be trained to translate the knowledge of an expert into features. The
features are all the characteristics of a house, neighborhood, economic environment,
etc. that make the price difference. For the expert, it took him probably some years to
master the art of estimate the price of a house. His expertise is getting better and better
after each sale.

For the machine, it takes millions of data, (i.e., example) to master this art. At the very
beginning of its learning, the machine makes a mistake, somehow like the junior
salesman. Once the machine sees all the example, it got enough knowledge to make its
estimation. At the same time, with incredible accuracy. The machine is also able to
adjust its mistake accordingly.