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Python Machine Learning By Example

You're reading from   Python Machine Learning By Example Unlock machine learning best practices with real-world use cases

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Product type Paperback
Published in Jul 2024
Publisher Packt
ISBN-13 9781835085622
Length 518 pages
Edition 4th Edition
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Author (1):
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Yuxi (Hayden) Liu Yuxi (Hayden) Liu
Author Profile Icon Yuxi (Hayden) Liu
Yuxi (Hayden) Liu
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Table of Contents (18) Chapters Close

Preface 1. Getting Started with Machine Learning and Python 2. Building a Movie Recommendation Engine with Naïve Bayes FREE CHAPTER 3. Predicting Online Ad Click-Through with Tree-Based Algorithms 4. Predicting Online Ad Click-Through with Logistic Regression 5. Predicting Stock Prices with Regression Algorithms 6. Predicting Stock Prices with Artificial Neural Networks 7. Mining the 20 Newsgroups Dataset with Text Analysis Techniques 8. Discovering Underlying Topics in the Newsgroups Dataset with Clustering and Topic Modeling 9. Recognizing Faces with Support Vector Machine 10. Machine Learning Best Practices 11. Categorizing Images of Clothing with Convolutional Neural Networks 12. Making Predictions with Sequences Using Recurrent Neural Networks 13. Advancing Language Understanding and Generation with the Transformer Models 14. Building an Image Search Engine Using CLIP: a Multimodal Approach 15. Making Decisions in Complex Environments with Reinforcement Learning 16. Other Books You May Enjoy
17. Index

Getting started with feature engineering

When it comes to a machine learning algorithm, the first question to ask is usually what features are available or what the predictive variables are.

The driving factors that are used to predict future prices of NASDAQ, the close prices, include historical and current open prices as well as historical performance (high, low, and volume). Note that current or same-day performance (high, low, and volume) shouldn’t be included because we simply can’t foresee the highest and lowest prices at which the stock traded, or the total number of shares traded before the market closed on that day.

Predicting the close price with only those preceding four indicators doesn’t seem promising and might lead to underfitting. So, we need to think of ways to generate more features in order to increase predictive power. In machine learning, feature engineering is the process of creating features in order to improve the performance of...

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