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Machine Learning - Regression Notes

The document outlines three main types of machine learning algorithms: supervised learning, unsupervised learning, and reinforcement learning, each with distinct applications and examples. It further explains regression analysis, its significance in predicting relationships between variables, and various types of regression such as linear, logistic, and polynomial regression. The document emphasizes the importance of selecting the appropriate regression model to maximize data insights and forecasting accuracy.
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0% found this document useful (0 votes)
8 views9 pages

Machine Learning - Regression Notes

The document outlines three main types of machine learning algorithms: supervised learning, unsupervised learning, and reinforcement learning, each with distinct applications and examples. It further explains regression analysis, its significance in predicting relationships between variables, and various types of regression such as linear, logistic, and polynomial regression. The document emphasizes the importance of selecting the appropriate regression model to maximize data insights and forecasting accuracy.
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3 types of Machine Learning Algorithms

1. Supervised Learning Algorithms

This algorithm consists of a target/outcome variable (or


dependent variable) which is to be predicted from a given set of
predictors (independent variables). Using this set of variables, we
generate a function that map inputs to desired outputs. The
training process continues until the model achieves a desired
level of accuracy on the training data.

Examples of Supervised Learning: Regression, Decision


Tree, Random Forest, KNN, Logistic Regression etc.

2. Unsupervised Learning Algorithms

In this algorithm, we do not have any target or outcome variable


to predict / estimate. It is used for clustering populations in
different groups, which is widely used for segmenting customers
into different groups for specific interventions.

Examples of Unsupervised Learning: Apriori algorithm, K-means.

3. Reinforcement Learning:

Using this algorithm, the machine is trained to make specific


decisions. It works this way: the machine is exposed to an
environment where it trains itself continually using trial and error.
This machine learns from past experience and tries to capture the
best possible knowledge to make accurate business decisions.

Example of Reinforcement Learning: Markov Decision Process,


Natural Language Processing.

Here is the list of commonly used machine learning algorithms.


These algorithms can be applied to almost any data problem:

1. Linear Regression
2. Logistic Regression
3. Decision Tree
4. SVM
5. Naive Bayes
6. kNN
7. K-Means
8. Random Forest
9. Dimensionality Reduction Algorithms
10. Gradient Boosting algorithms
1. GBM
2. XGBoost
3. LightGBM
4. CatBoost
What Is Regression in
Machine Learning?

Regression analysis is a way of predicting future happenings


between a dependent (target) and one or more independent
variables (also known as a predictor). For example, it can be used
to predict the relationship between reckless driving and the total
number of road accidents caused by a driver, or, to use a
business example, the effect on sales and spending a certain
amount of money on advertising.

Regression is one of the most common models of machine


learning. It differs from classification models because it estimates
a numerical value, whereas classification models identify which
category an observation belongs to.The main uses of regression
analysis are forecasting, time series modeling and finding the
cause and effect relationship between variables.

Regression has a wide range of real-life applications. It is essential


for any machine learning problem that involves continuous
numbers – this includes, but is not limited to, a host of examples,
including:

Financial forecasting (like house price estimates, or stock prices)

Sales and promotions forecasting


Testing automobiles

Weather analysis and prediction

Time series forecasting

As well as telling you whether a significant relationship exists


between two or more variables, regression analysis can give
specific details about that relationship. Specifically, it can
estimate the strength of impact that multiple variables will have
on a dependent variable. If you change the value of one variable
(price, say), regression analysis should tell you what effect that
will have on the dependent variable (sales).

Businesses can use regression analysis to test the effects of


variables as measured on different scales. With it in your toolbox,
you can assess the best set of variables to use when building
predictive models, greatly increasing the accuracy of your
forecasting. Finally, regression analysis is the best way of solving
regression problems in machine learning using data modeling. By
plotting data points on a chart and running the best fit line
through them, you can predict each data point’s likelihood of
error: the further away from the line they lie, the higher their
error of prediction (this best fit line is also known as a regression
line).

What Are the Different Types of Regression?


1. Linear regression

One of the most basic types of regression in machine learning,


linear regression comprises a predictor variable and a dependent
variable related to each other in a linear fashion. Linear
regression involves the use of a best fit line, as described above.

You should use linear regression when your variables are related
linearly. For example, if you are forecasting the effect of
increased advertising spend on sales. However, this analysis is
susceptible to outliers, so it should not be used to analyze big
data sets.

In this process, a relationship is established between independent


and dependent variables by fitting them to a line. This line is
known as the regression line and is represented by a linear
equation Y= a *X + b.

In this equation:

Y – Dependent Variable

a – Slope

X – Independent variable

b – Intercept
The coefficients a & b are derived by minimizing the sum of the
squared difference of distance between data points and the
regression line.

2. Logistic regression

Does your dependent variable have a discrete value? In other


words, can it only have one of two values (either 0 or 1, true or
false, black or white, spam or not spam, and so on)? In that case,
you might want to use logistic regression to analyze your data.
Logistic regression uses a sigmoid curve to show the relationship
between the target and independent variables. However, caution
should be exercised: logistic regression works best with large data
sets that have an almost equal occurrence of values in target
variables. The dataset should not contain a high correlation
between independent variables (a phenomenon known as
multicollinearity), as this will create a problem when ranking the
variables.

3. Polynomial regression

Polynomial regression models a non-linear dataset using a linear


model. It is the equivalent of making a square peg fit into a round
hole. It works in a similar way to multiple linear regression (which
is just linear regression but with multiple independent variables),
but uses a non-linear curve. It is used when data points are
present in a non-linear fashion.

The model transforms these data points into polynomial features


of a given degree, and models them using a linear model. This
involves best fitting them using a polynomial line, which is
curved, rather than the straight line seen in linear regression.
However, this model can be prone to overfitting, so you are
advised to analyse the curve towards the end to avoid odd-
looking results.

There are more types of regression analysis than those listed


here, but these five are probably the most commonly used. Make
sure you pick the right one, and it can unlock the full potential of
your data, setting you on the path to greater insights.

Any linear equation is a polynomial regression that has a degree


of 1. The very common and usual equation used to define the
regression is;

y = mx+b

In this equation, m is the slope, and b is the y-intercept. One can


easily write this as

f(x) = c0 + c1 x where c1 is the slope and the c0 is the y-


intercept.

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