# Category Archives: Data Science

## Pricing Analytics in Banking: Strategies, Examples

Last updated: 15th May, 2024 Have you ever wondered how your bank decides what to charge you for its services? Or, perhaps how do banks arrive at the pricing (fees, rates, and charges) associated with various banking products? If you’re a product manager, data analyst, or data scientist in the banking industry, you might be aware that these pricing decisions are far from arbitrary. Rather, these pricing decisions are made based on one or more frameworks while leveraging data analytics. They result from intricate pricing strategies, driven by an extensive array of data and sophisticated analytics. In this blog, we will learn about some popular pricing strategies banks execute to …

## How to Choose Right Statistical Tests: Examples

Last updated: 13th May, 2024 Whether you are a researcher, data analyst, or data scientist, selecting the appropriate statistical test is crucial for accurate and reliable hypothesis testing for validating any given claim. With numerous tests available, it can be overwhelming to determine the right statistical test for your research question and data type. In this blog, the aim is to simplify the process, providing you with a systematic approach to choosing the right statistical test. This blog will be particularly helpful for those new to statistical analysis and unsure which test to use for their specific needs. You will learn a clear and structured method for selecting the appropriate …

## Machine Learning Lifecycle: Data to Deployment Example

Last updated: 12th May 2024 In this blog, we get an overview of the machine learning lifecycle, from initial data handling to the deployment and iterative improvement of ML models. You might want to check out this book for greater insights into machine learning (ML) concepts – Machine Learning Interviews. The following is the diagram representing the machine learning lifecycle while showcasing three key stages such as preparing data, ML development, and ML deployment. These three stages are explained later in this blog. Stage A: Preparing Data Preparing data for training machine learning models involves collecting data, constructing data pipelines for preprocessing, and refining the data to prepare it for …

## Linear Regression T-test: Formula, Example

Last updated: 7th May, 2024 Linear regression is a popular statistical method used to model the relationship between a dependent variable and one or more independent variables. In linear regression, the t-test is a statistical hypothesis testing technique used to test the hypothesis related to the linearity of the relationship between the response variable and different predictor variables. In this blog, we will discuss linear regression and t-test and related formulas and examples. For a detailed read on linear regression, check out my related blog – Linear regression explained with real-life examples. T-tests are used in linear regression to determine if a particular independent variable (or feature) is statistically significant …

## Feature Selection vs Feature Extraction: Machine Learning

Last updated: 2nd May, 2024 The success of machine learning models often depends on the quality of the features used to train them. This is where the concepts of feature extraction and feature selection come in. In this blog post, we’ll explore the difference between feature selection and feature extraction, two key techniques used as part of feature engineering in machine learning to optimize feature sets for better model performance. Both feature selection and feature extraction are used for dimensionality reduction which is key to reducing model complexity given that higher model complexity often results in overfitting. We’ll provide examples of how they can be applied in real-world scenarios. If …

## Bias-Variance Trade-off in Machine Learning: Examples

Last updated: 1st May, 2024 The bias-variance trade-off is a fundamental concept in machine learning that presents a challenging dilemma for data scientists. It relates to the problem of simultaneously minimizing two sources of residual error that prevent supervised learning algorithms from generalizing beyond their training data. These two sources of error are related to Bias and Variance. Bias-related errors refer to the error due to overly simplistic machine learning models. Variance-related errors refer to the error due to too much complexity in the models. In this post, you will learn about the concepts of bias & variance in the machine learning (ML) models. You will learn about the tradeoff between bias …

## Mean Squared Error vs Cross Entropy Loss Function

Last updated: 1st May, 2024 As a data scientist, understanding the nuances of various cost functions is critical for building high-performance machine learning models. Choosing the right cost function can significantly impact the performance of your model and determine how well it generalizes to unseen data. In this blog post, we will delve into two widely used cost functions: Mean Squared Error (MSE) and Cross Entropy Loss. By comparing their properties, applications, and trade-offs, we aim to provide you with a solid foundation for selecting the most suitable loss function for your specific problem. Cost functions play a pivotal role in training machine learning models as they quantify the difference …

## Cross Entropy Loss Explained with Python Examples

Last updated: 1st May, 2024 In this post, you will learn the concepts related to the cross-entropy loss function along with Python code examples and which machine learning algorithms use the cross-entropy loss function as an objective function for training the models. Cross-entropy loss represents a loss function for models that predict the probability value as output (probability distribution as output). Logistic regression is one such algorithm whose output is a probability distribution. You may want to check out the details on how cross-entropy loss is related to information theory and entropy concepts – Information theory & machine learning: Concepts What’s Cross-Entropy Loss? Cross-entropy loss, also known as negative log-likelihood …

## Gradient Descent in Machine Learning: Python Examples

Last updated: 22nd April, 2024 This post will teach you about the gradient descent algorithm and its importance in training machine learning models. For a data scientist, it is of utmost importance to get a good grasp on the concepts of gradient descent algorithm as it is widely used for optimizing/minimizing the objective function / loss function / cost function related to various machine learning models such as regression, neural network, etc. in terms of learning optimal weights/parameters. This algorithm is essential because it underpins many machine learning models, enabling them to learn from data by optimizing their performance. Introduction to Gradient Descent Algorithm The gradient descent algorithm is an optimization …

## Loss Function vs Cost Function vs Objective Function: Examples

Last updated: 19th April, 2024 Among the terminologies used in training machine learning models, the concepts of loss function, cost function, and objective function often cause a fair amount of confusion, especially for aspiring data scientists and practitioners in the early stages of their careers. The reason for this confusion isn’t unfounded, as these terms are similar / closely related, often used interchangeably, and yet, they are different and serve distinct purposes in the realm of machine learning algorithms. Understanding the differences and specific roles of loss function, cost function, and objective function is more than a mere exercise in academic rigor. By grasping these concepts, data scientists can make …

## Free IBM Data Sciences Courses on Coursera

In the rapidly evolving fields of Data Science and Artificial Intelligence, staying ahead means continually learning and adapting. In this blog, there is a list of around 20 free data science-related courses from IBM available on coursera.org that can help data science enthusiasts master different domains in AI / Data Science / Machine Learning. This list includes courses related to the core technical skills and knowledge needed to excel in these innovative fields. Foundational Knowledge: Understanding the essence of Data Science lays the groundwork for a successful career in this field. A solid foundation helps you grasp complex concepts easily and contributes to better decision-making, problem-solving, and the capacity to …

## Self-Supervised Learning vs Transfer Learning: Examples

Last updated: 3rd March, 2024 Understanding the difference between self-supervised learning and transfer learning, along with their practical applications, is crucial for any data scientist looking to optimize model performance and efficiency. Self-supervised learning and transfer learning are two pivotal techniques in machine learning, each with its unique approach to leveraging data for model training. Transfer learning capitalizes on a model pre-trained on a broad dataset with diverse categories, to serve as a foundational model for a more specialized task. his method relies on labeled data, often requiring significant human effort to label. Self-supervised learning, in contrast, pre-trains models using unlabeled data, creatively generating its labels from the inherent structure …

## Large Language Models (LLMs): Types, Examples

Last updated: 31st Jan, 2024 Large language models (LLMs), being the key pillar of generative AI, have been gaining traction in the world of natural language processing (NLP) due to their ability to process massive amounts of text and generate accurate results related to predicting the next word in a sentence, given all the previous words. These different LLM models are trained on a large or broad corpus of text datasets, which contain hundreds of millions to billions of words. LLMs, as they are known, rely on complex algorithms including transformer architectures that shift through large datasets and recognize patterns at the word level. This data helps the LLMs better understand …

## Amazon (AWS) Machine Learning / AI Services List

Last updated: 30th Jan, 2024 Amazon Web Services (AWS) is a cloud computing platform that offers machine learning as one of its many services. AWS has been around for over 10 years and has helped data scientists leverage the Amazon AWS cloud to train machine learning models. AWS provides an easy-to-use interface that helps data scientists build, test, and deploy their machine learning models with ease. AWS also provides access to pre-trained machine learning models so you can start building your model without having to spend time training it first! You can get greater details on AWS machine learning services, data science use cases, and other aspects in this book – …

## How is ChatGPT Trained to Generate Desired Responses?

Last updated: 27th Jan, 2024 Training an AI / Machine Learning model as sophisticated as the one used by ChatGPT involves a multi-step process that fine-tunes its ability to understand and generate human-like text. Let’s break down the ChatGPT training process into three primary steps. Note that OpenAI has not published any specific paper on this. However, the reference has been provided on this page – Introducing ChatGPT. Fine-tuning Base Model with Supervised Learning The first phase starts with collecting demonstration data. Here, prompts are taken from a dataset, and human labelers provide the desired output behavior, which essentially sets the standard for the AI’s responses. For example, if the …

## Generalization Errors in Machine Learning: Python Examples

Last updated: 21st Jan, 2024 Machine Learning (ML) models are designed to make predictions or decisions based on data. However, a common challenge, data scientists face when developing these models is ensuring that they generalize well to new, unseen data. Generalization refers to a model’s ability to perform accurately on new, unseen examples after being trained on a limited set of data. When models don’t generalize well, they commit errors. These errors are called generalization errors. In this blog, you will learn about different types of generalization errors, with examples, and walk through a simple Python demonstration to illustrate these concepts. Types of Generalization Errors Generalization errors in machine learning …

I found it very helpful. However the differences are not too understandable for me