Book Image

Smarter Decisions - The Intersection of Internet of Things and Decision Science

By : Jojo Moolayil
Book Image

Smarter Decisions - The Intersection of Internet of Things and Decision Science

By: Jojo Moolayil

Overview of this book

With an increasing number of devices getting connected to the Internet, massive amounts of data are being generated that can be used for analysis. This book helps you to understand Internet of Things in depth and decision science, and solve business use cases. With IoT, the frequency and impact of the problem is huge. Addressing a problem with such a huge impact requires a very structured approach. The entire journey of addressing the problem by defining it, designing the solution, and executing it using decision science is articulated in this book through engaging and easy-to-understand business use cases. You will get a detailed understanding of IoT, decision science, and the art of solving a business problem in IoT through decision science. By the end of this book, you’ll have an understanding of the complex aspects of decision making in IoT and will be able to take that knowledge with you onto whatever project calls for it
Table of Contents (15 chapters)
Smarter Decisions – The Intersection of Internet of Things and Decision Science
Credits
About the Author
About the Reviewer
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Preface

Logistic Regression - Predicting a categorical outcome


Let's shift our focus to building a predictive model that will now take a different step. We started by solving the prediction problem that can predict a continuous outcome, but we didn't achieve great results. John's team requires a solution that they can leverage to predict the end quality of the detergent being manufactured. It could be achieved in multiple ways; the first one was to predict the most critical output quality parameter and the second was to predict the actual end outcome, Good or Bad. Both the methods have their own advantages and disadvantages. Predicting the continuous outcome, Output Quality Parameter 2, actually gives us a sneak peek to understand the actual quantified deviation from the benchmark, say below or above 60%. Such crisp information aids the technician in taking more accurate corrective countermeasures.

On the other hand, predicting the categorical outcome, Good/Bad Quality, has its interpretational advantage...