Our news and views relating to Data Analytics, Big Data, Machine Learning, and the world of Credit.
We are quite proud of the ability to develop performant, stable and trustworthy predictive models here at Principa. For nearly 20 years, we have been developing predictive models that have helped so many of our clients to make better decisions, more often than not outperforming what our best competitors can achieve. The models that we have historically developed can be categorised as part of the additive group of models – that is, a handful of predictive characteristics are selected and classed in a way that best separates the ‘goods’ from the ‘bads' (i.e. the traditional binary classification application). Depending on the new unseen data, the resulting weightings are then added together to get a final score. For example, consider a 3-feature model that uses only Home Ownership, Years at Employer and Age. Let's say you are a homeowner and for this you get 10 points, you have been with your employer for 5+ years (15 points), and you are 23 years of age (8 points), then your final score is 33, and the strategy will use this score and decide where you should go in the business decision tree.
Machine learning models can be used very successfully in many different contexts to predict outcomes for different use cases accurately. These predictions can be used within the business to make better decisions or to operate more efficiently (or both) and can give you an edge over your competitors. Predictive models all follow the same recipe – i.e. train a model on historical data and then apply this model to unseen data to get predictions. If your model generalises well, you have a prediction that you can trust and use to decide "do this, not that" with some degree of accuracy.
During the last year, we’ve experienced the escalation of social issues around artificial intelligence (AI), with Elon Musk leading the charge. Musk continues to advocate the idea that humanity is getting closer to a Skynet-like future – to many people’s concern. One of the very real and valid concerns is the idea that many existing jobs will be automated, thanks to AI.
A Deep Learning IndabaX is a locally-organised, one-day Indaba that helps spread knowledge and builds capacity in machine learning. It's a way to experiment with how we can strengthen our machine learning community, and allow more people to contribute to the conversation.
Data mining is another term that is often confused with machine learning (ML). Here’s an easy explanation of the two terms, as well as the relationship between the two.