DATA MINING FOR BUSINESS AND GOVERNANCE
Chris Emmery, Çiçek Güven & Gonzalo Nápoles
TABLE OF CONTENTS
Introduction to Data Mining ........................................................................................................................... 5
1. What is Data Mining? ................................................................................................................................ 5
1.1. Key aspects: Computation & Large data sets .................................................................................... 5
1.2. Big Data ............................................................................................................................................. 6
1.3. Applications ....................................................................................................................................... 6
2. What makes prediction possible?............................................................................................................... 6
3. Data Mining as Applied Machine Learning ................................................................................................ 7
3.1. Supervised learning ........................................................................................................................... 7
3.2. Unsupervised Learning ...................................................................................................................... 8
Introduction to Data Science ......................................................................................................................... 10
1. What is data science?............................................................................................................................... 10
1.1. Example ........................................................................................................................................... 10
1.2. Terminology..................................................................................................................................... 10
1.3. The algorithm .................................................................................................................................. 12
1.4. Evaluation ........................................................................................................................................ 12
1.5. Computer hardware ........................................................................................................................ 13
2. Representing data .................................................................................................................................... 14
2.1. How do we get data? ....................................................................................................................... 14
2.2. File formats: raw-level representation of files ................................................................................ 15
2.3. Databases: storing the data a bit more cleverly .............................................................................. 16
2.4. Data science in practice: 80% vs. 20% ............................................................................................. 16
2.5. Representation of data .................................................................................................................... 16
3. Classification ............................................................................................................................................ 24
3.1. Decision boundaries to label parts of a data as being a certain category ....................................... 26
3.2. ML algorithms for classification using decision boundaries ............................................................ 26
3.3. Multiclass classification (ó binary classification) ........................................................................... 35
4. Fitting and tuning ..................................................................................................................................... 36
4.1. Fitting............................................................................................................................................... 37
5. Evaluation ................................................................................................................................................ 43
5.1. Metrics for evaluating a Regression Task ........................................................................................ 43
5.2. Metrics for evaluating a Classification Task..................................................................................... 43
5.3. Schemes for applying metrics in model selection ........................................................................... 46
5.4. Best practices & common pitfalls .................................................................................................... 49
6. Models ...................................................................................................................................................... 55
6.1. Model selection ............................................................................................................................... 55
6.2. What is ‘learning’? ........................................................................................................................... 55
Working with Text data ................................................................................................................................ 56
1. Representing text as vectors .................................................................................................................... 56
1.1. Converting to numbers .................................................................................................................... 56
2. Binary vectors for Decision Tree classification (ID3) ................................................................................. 58
2.1. Inferring rules (decisions) by information gain: EX: Spam detection .............................................. 58
3. Using Vector Spaces and weightings ........................................................................................................ 62
3.1. Binary vs. Frequency........................................................................................................................ 62
3.2. Term frequencies............................................................................................................................. 62
3.3. (Inverse) document frequency ........................................................................................................ 64
3.4. Putting it together: tf * idf weighting............................................................................................... 64
3.5. Normalizing vector representations ................................................................................................ 65
4. Document classification using 𝑘-NN ........................................................................................................ 66
4.1. 𝓵𝟐 normalization ............................................................................................................................. 66
4.2. Cosine similarity .............................................................................................................................. 67
4.3. Using similarity in 𝒌-nn.................................................................................................................... 67
5. Practical examples.................................................................................................................................... 70
5.1. Naive text cleaning .......................................................................................................................... 70
6. Document classification ........................................................................................................................... 73
6.1. Sentiment analysis ........................................................................................................................... 73
6.2. Build a model ................................................................................................................................... 75
6.3. Test our model ................................................................................................................................ 82
Dimensionality reduction .............................................................................................................................. 83
1. The importance of dimensions ................................................................................................................. 83
Deep learning ............................................................................................................................................. 121
1. A brief history of AI ................................................................................................................................. 121
1.1. Alan Turing .................................................................................................................................... 121
1.2. Sci-project (1974) .......................................................................................................................... 122
1.3. The Sojourner Rover (1997) .......................................................................................................... 123
1.4. “Sub-symbolic” AI (1988-2016) ..................................................................................................... 123
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