Book Image

Hands-On Predictive Analytics with Python

By : Alvaro Fuentes
Book Image

Hands-On Predictive Analytics with Python

By: Alvaro Fuentes

Overview of this book

Predictive analytics is an applied field that employs a variety of quantitative methods using data to make predictions. It involves much more than just throwing data onto a computer to build a model. This book provides practical coverage to help you understand the most important concepts of predictive analytics. Using practical, step-by-step examples, we build predictive analytics solutions while using cutting-edge Python tools and packages. The book's step-by-step approach starts by defining the problem and moves on to identifying relevant data. We will also be performing data preparation, exploring and visualizing relationships, building models, tuning, evaluating, and deploying model. Each stage has relevant practical examples and efficient Python code. You will work with models such as KNN, Random Forests, and neural networks using the most important libraries in Python's data science stack: NumPy, Pandas, Matplotlib, Seaborn, Keras, Dash, and so on. In addition to hands-on code examples, you will find intuitive explanations of the inner workings of the main techniques and algorithms used in predictive analytics. By the end of this book, you will be all set to build high-performance predictive analytics solutions using Python programming.
Table of Contents (11 chapters)

Practical project – credit card default

This is our second practical project, in which we will solve a classification problem. As we did with the diamonds dataset, let's begin the predictive analytics process for this new project by understanding and defining the problem.

Credit card default – problem understanding and definition

TFI is the Taiwanese Financial Institution and it offers credit cards. It has been detecting an increase in defaults among its customers; a default is defined as a customer missing a payment for a single month. This situation is negatively affecting the revenue of the company and they know they can do something about it if they could anticipate which credit card holders are going...