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Machine Learning with R - Second Edition

By : Brett Lantz
Book Image

Machine Learning with R - Second Edition

By: Brett Lantz

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Machine Learning with R - Second Edition
Brett Lantz
Jul, 2015 | 452 pages
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Table of Contents (19 chapters)
Machine Learning with R Second Edition
Machine Learning with R Second Edition
Credits
Credits
About the Author
About the Author
About the Reviewers
About the Reviewers
www.PacktPub.com
www.PacktPub.com
Preface
Preface
Free Chapter
1
Introducing Machine Learning
Introducing Machine Learning
The origins of machine learning
Uses and abuses of machine learning
How machines learn
Machine learning in practice
Machine learning with R
Summary
2
Managing and Understanding Data
Managing and Understanding Data
R data structures
Managing data with R
Exploring and understanding data
Summary
3
Lazy Learning – Classification Using Nearest Neighbors
Lazy Learning – Classification Using Nearest Neighbors
Understanding nearest neighbor classification
Example – diagnosing breast cancer with the k-NN algorithm
Summary
4
Probabilistic Learning – Classification Using Naive Bayes
Probabilistic Learning – Classification Using Naive Bayes
Understanding Naive Bayes
Example – filtering mobile phone spam with the Naive Bayes algorithm
Summary
5
Divide and Conquer – Classification Using Decision Trees and Rules
Divide and Conquer – Classification Using Decision Trees and Rules
Understanding decision trees
Example – identifying risky bank loans using C5.0 decision trees
Understanding classification rules
Example – identifying poisonous mushrooms with rule learners
Summary
6
Forecasting Numeric Data – Regression Methods
Forecasting Numeric Data – Regression Methods
Understanding regression
Example – predicting medical expenses using linear regression
Understanding regression trees and model trees
Example – estimating the quality of wines with regression trees and model trees
Summary
7
Black Box Methods – Neural Networks and Support Vector Machines
Black Box Methods – Neural Networks and Support Vector Machines
Understanding neural networks
Example – Modeling the strength of concrete with ANNs
Understanding Support Vector Machines
Example – performing OCR with SVMs
Summary
8
Finding Patterns – Market Basket Analysis Using Association Rules
Finding Patterns – Market Basket Analysis Using Association Rules
Understanding association rules
Example – identifying frequently purchased groceries with association rules
Summary
9
Finding Groups of Data – Clustering with k-means
Finding Groups of Data – Clustering with k-means
Understanding clustering
Example – finding teen market segments using k-means clustering
Summary
10
Evaluating Model Performance
Evaluating Model Performance
Measuring performance for classification
Estimating future performance
Summary
11
Improving Model Performance
Improving Model Performance
Tuning stock models for better performance
Improving model performance with meta-learning
Summary
12
Specialized Machine Learning Topics
Specialized Machine Learning Topics
Working with proprietary files and databases
Working with online data and services
Working with domain-specific data
Improving the performance of R
Summary
Index
Index

Example – identifying risky bank loans using C5.0 decision trees

The global financial crisis of 2007-2008 highlighted the importance of transparency and rigor in banking practices. As the availability of credit was limited, banks tightened their lending systems and turned to machine learning to more accurately identify risky loans.

Decision trees are widely used in the banking industry due to their high accuracy and ability to formulate a statistical model in plain language. Since government organizations in many countries carefully monitor lending practices, executives must be able to explain why one applicant was rejected for a loan while the others were approved. This information is also useful for customers hoping to determine why their credit rating is unsatisfactory.

It is likely that automated credit scoring models are employed to instantly approve credit applications on the telephone and web. In this section, we will develop a simple credit approval model using C5.0 decision trees...

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