Machine learning models are classified mainly into supervised, unsupervised, and reinforcement learning methods. We will be covering detailed discussions about each technique in later chapters; here is a very basic summary of them:
- Supervised learning: This is where an instructor provides feedback to a student on whether they have performed well in an examination or not. In which target variable do present and models do get tune to achieve it. Many machine learning methods fall in to this category:
- Classification problems
- Logistic regression
- Lasso and ridge regression
- Decision trees (classification trees)
- Bagging classifier
- Random forest classifier
- Boosting classifier (adaboost, gradient boost, and xgboost)
- SVM classifier
- Recommendation engine
- Regression problems
- Linear regression (lasso and ridge regression)
- Decision trees (regression trees)
- Bagging regressor
- Random forest regressor
- Boosting regressor - (adaboost, gradient boost, and xgboost)
- SVM regressor
- Unsupervised learning: Similar to the teacher-student analogy, in which the instructor does not present and provide feedback to the student and who needs to prepare on his/her own. Unsupervised learning does not have as many are in supervised learning:
- Principal component analysis (PCA)
- K-means clustering
- Reinforcement learning: This is the scenario in which multiple decisions need to be taken by an agent prior to reaching the target and it provides a reward, either +1 or -1, rather than notifying how well or how badly the agent performed across the path:
- Markov decision process
- Monte Carlo methods
- Temporal difference learning
- Logistic regression: This is the problem in which outcomes are discrete classes rather than continuous values. For example, a customer will arrive or not, he will purchase the product or not, and so on. In statistical methodology, it uses the maximum likelihood method to calculate the parameter of individual variables. In contrast, in machine learning methodology, log loss will be minimized with respect to β coefficients (also known as weights). Logistic regression has a high bias and a low variance error.
- Linear regression: This is used for the prediction of continuous variables such as customer income and so on. It utilizes error minimization to fit the best possible line in statistical methodology. However, in machine learning methodology, squared loss will be minimized with respect to β coefficients. Linear regression also has a high bias and a low variance error.
- Lasso and ridge regression: This uses regularization to control overfitting issues by applying a penalty on coefficients. In ridge regression, a penalty is applied on the sum of squares of coefficients, whereas in lasso, a penalty is applied on the absolute values of the coefficients. The penalty can be tuned in order to change the dynamics of the model fit. Ridge regression tries to minimize the magnitude of coefficients, whereas lasso tries to eliminate them.
- Decision trees: Recursive binary splitting is applied to split the classes at each level to classify observations to their purest class. The classification error rate is simply the fraction of the training observations in that region that do not belong to the most common class. Decision trees have an overfitting problem due to their high variance in a way to fit; pruning is applied to reduce the overfitting problem by growing the tree completely. Decision trees have low a bias and a high variance error.
- Bagging: This is an ensemble technique applied on decision trees in order to minimize the variance error and at the same time not increase the error component due to bias. In bagging, various samples are selected with a subsample of observations and all variables (columns), subsequently fit individual decision trees independently on each sample and later ensemble the results by taking the maximum vote (in regression cases, the mean of outcomes calculated).
- Random forest: This is similar to bagging except for one difference. In bagging, all the variables/columns are selected for each sample, whereas in random forest a few subcolumns are selected. The reason behind the selection of a few variables rather than all was that during each independent tree sampled, significant variables always came first in the top layer of splitting which makes all the trees look more or less similar and defies the sole purpose of ensemble: that it works better on diversified and independent individual models rather than correlated individual models. Random forest has both low bias and variance errors.
- Boosting: This is a sequential algorithm that applies on weak classifiers such as a decision stump (a one-level decision tree or a tree with one root node and two terminal nodes) to create a strong classifier by ensembling the results. The algorithm starts with equal weights assigned to all the observations, followed by subsequent iterations where more focus was given to misclassified observations by increasing the weight of misclassified observations and decreasing the weight of properly classified observations. In the end, all the individual classifiers were combined to create a strong classifier. Boosting might have an overfitting problem, but by carefully tuning the parameters, we can obtain the best of the self machine learning model.
- Support vector machines (SVMs): This maximizes the margin between classes by fitting the widest possible hyperplane between them. In the case of non-linearly separable classes, it uses kernels to move observations into higher-dimensional space and then separates them linearly with the hyperplane there.
- Recommendation engine: This utilizes a collaborative filtering algorithm to identify high-probability items to its respective users, who have not used it in the past, by considering the tastes of similar users who would be using that particular item. It uses the alternating least squares (ALS) methodology to solve this problem.
- Principal component analysis (PCA): This is a dimensionality reduction technique in which principal components are calculated in place of the original variable. Principal components are determined where the variance in data is maximum; subsequently, the top n components will be taken by covering about 80 percent of variance and will be used in further modeling processes, or exploratory analysis will be performed as unsupervised learning.
- K-means clustering: This is an unsupervised algorithm that is mainly utilized for segmentation exercise. K-means clustering classifies the given data into k clusters in such a way that, within the cluster, variation is minimal and across the cluster, variation is maximal.
- Markov decision process (MDP): In reinforcement learning, MDP is a mathematical framework for modeling decision-making of an agent in situations or environments where outcomes are partly random and partly under control. In this model, environment is modeled as a set of states and actions that can be performed by an agent to control the system's state. The objective is to control the system in such a way that the agent's total payoff is maximized.
- Monte Carlo method: Monte Carlo methods do not require complete knowledge of the environment, in contrast with MDP. Monte Carlo methods require only experience, which is obtained by sample sequences of states, actions, and rewards from actual or simulated interaction with the environment. Monte Carlo methods explore the space until the final outcome of a chosen sample sequences and update estimates accordingly.
- Temporal difference learning: This is a core theme in reinforcement learning. Temporal difference is a combination of both Monte Carlo and dynamic programming ideas. Similar to Monte Carlo, temporal difference methods can learn directly from raw experience without a model of the environment's dynamics. Like dynamic programming, temporal difference methods update estimates based in part on other learned estimates, without waiting for a final outcome. Temporal difference is the best of both worlds and is most commonly used in games such as AlphaGo and so on.
