Book Image

Data Smart

By : John W. Foreman
Book Image

Data Smart

By: John W. Foreman

Overview of this book

Data Science gets thrown around in the press like it's magic. Major retailers are predicting everything from when their customers are pregnant to when they want a new pair of Chuck Taylors. It's a brave new world where seemingly meaningless data can be transformed into valuable insight to drive smart business decisions. But how does one exactly do data science? Do you have to hire one of these priests of the dark arts, the "data scientist," to extract this gold from your data? Nope. Data science is little more than using straight-forward steps to process raw data into actionable insight. And in Data Smart, author and data scientist John Foreman will show you how that's done within the familiar environment of a spreadsheet. Why a spreadsheet? It's comfortable! You get to look at the data every step of the way, building confidence as you learn the tricks of the trade. Plus, spreadsheets are a vendor-neutral place to learn data science without the hype. But don't let the Excel sheets fool you. This is a book for those serious about learning the analytic techniques, math and the magic, behind big data.
Table of Contents (18 chapters)
Free Chapter
1
Cover
2
Credits
3
About the Author
4
About the Technical Editors
5
Acknowledgments
18
End User License Agreement

Chapter 4
Optimization Modeling: Because That “Fresh Squeezed” Orange Juice Ain't Gonna Blend Itself

Business Week recently published an article about how The Coca-Cola Company uses a large analytics model to determine how to blend raw orange juices to create the perfect not-from-concentrate product.

I was discussing this article with some folks, and one of them blurted something like, “But you could never do that with an artificial intelligence model!”

They were right. You can't. Because Coca-Cola doesn't use an artificial intelligence model. It uses an optimization model. Huh? What's the difference?

An artificial intelligence model predicts the result of a process by analyzing its inputs. That's not what Coca-Cola is doing. Coca-Cola doesn't need to predict the outcome when they combine juice A with juice B. It needs to decide which combination of juice A, B, C, D, and so on to buy and blend together. Coca-Cola is taking some...