Book Image

Data Science Algorithms in a Week

By : Dávid Natingga
Book Image

Data Science Algorithms in a Week

By: Dávid Natingga

Overview of this book

<p>Machine learning applications are highly automated and self-modifying, and they continue to improve over time with minimal human intervention as they learn with more data. To address the complex nature of various real-world data problems, specialized machine learning algorithms have been developed that solve these problems perfectly. Data science helps you gain new knowledge from existing data through algorithmic and statistical analysis.</p> <p>This book will address the problems related to accurate and efficient data classification and prediction. Over the course of 7 days, you will be introduced to seven algorithms, along with exercises that will help you learn different aspects of machine learning. You will see how to pre-cluster your data to optimize and classify it for large datasets. You will then find out how to predict data based on the existing trends in your datasets.</p> <p>This book covers algorithms such as: k-Nearest Neighbors, Naive Bayes, Decision Trees, Random Forest, k-Means, Regression, and Time-series. On completion of the book, you will understand which machine learning algorithm to pick for clustering, classification, or regression and which is best suited for your problem.</p>
Table of Contents (12 chapters)
11
Glossary of Algorithms and Methods in Data Science

Business profit - analysis of the trend

We are interested in predicting the profits of a business for the year 2018 given its profits for the previous years:

Year

Profit in USD

2011

40k

2012

43k

2013

45k

2014

50k

2015

54k

2016

57k

2017

59k

2018

?

Analysis:

In this example, the profit is always increasing, so we can think of representing the profit as a growing function dependent on the time variable represented by years. The differences in profit between the subsequent years are: 3k, 2k, 5k, 4k, 3k, and 2k USD. These differences do not seem to be affected by time, and the variation between them is relatively low. Therefore, we may try to predict the profit for the coming years by performing a linear regression. We express profit p in terms of the year y in the linear equation, also called a trend line:

profit=a*year+b

We...