Book Image

Data Science Projects with Python

By : Barbora stetinova
Book Image

Data Science Projects with Python

By: Barbora stetinova

Overview of this book

Data Science Projects with Python is designed to give you practical guidance on industry-standard data analysis and machine learning tools in Python, with the help of realistic data. The course will help you understand how you can use pandas and Matplotlib to critically examine a dataset with summary statistics and graphs and extract the insights you seek to derive. You will continue to build on your knowledge as you learn how to prepare data and feed it to machine learning algorithms, such as regularized logistic regression and random forest, using the scikit-learn package. You’ll discover how to tune the algorithms to provide the best predictions on new and, unseen data. As you delve into later chapters, you’ll be able to understand the working and output of these algorithms and gain insight into not only the predictive capabilities of the models but also their reasons for making these predictions. The codes for this course can be downloaded from https://github.com/TrainingByPackt/Data-Science-Projects-with-Python-eLearning.
Table of Contents (6 chapters)
Chapter 6
Imputation of Missing Data, Financial Analysis, and Delivery to Client
Content Locked
Section 8
Financial Analysis
The model performance metrics we have calculated so far were based on abstract measures that could be applied to analyze any classification model: how accurate a model is or how skillful a model is at identifying true positives relative to false positives (ROC AUC), or the correctness of positive predictions (precision). These metrics are important for understanding the basic workings of a model and are widely used within the machine learning community, so it's important to thoroughly understand them. However, for the application of a model to business processes, clients will not always be able to use such model performance metrics to establish an understanding of exactly how they will use a model to guide business decisions, or how much value a model can be expected to create. To go the extra mile and make the connection of the mathematical world of predicted probabilities and thresholds, to the business world of costs and benefits, a financial analysis of some kind is usually required. Here are the topics that we will cover now: