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Course Outline

Introduction

  • Distinctions between statistical learning (statistical analysis) and machine learning
  • The growing adoption of machine learning technology and talent by financial institutions and banks

Different Types of Machine Learning

  • Supervised versus unsupervised learning
  • Iteration and evaluation processes
  • The bias-variance trade-off
  • Integrating supervised and unsupervised methods (semi-supervised learning)

Machine Learning Languages and Toolsets

  • Open-source versus proprietary systems and software
  • Comparison: Python vs. R vs. Matlab
  • Libraries and frameworks

Machine Learning Case Studies

  • Consumer data and big data applications
  • Risk assessment in consumer and business lending
  • Enhancing customer service via sentiment analysis
  • Identifying identity fraud, billing fraud, and money laundering

Hands-on: Python for Machine Learning

  • Setting up the development environment
  • Installing Python machine learning libraries and packages
  • Working with scikit-learn and PyBrain

How to Load Machine Learning Data

  • Databases, data warehouses, and streaming data sources
  • Distributed storage and processing using Hadoop and Spark
  • Handling exported data and Excel files

Modeling Business Decisions with Supervised Learning

  • Data classification techniques
  • Using regression analysis to predict outcomes
  • Selecting appropriate machine learning algorithms
  • Understanding decision tree algorithms
  • Understanding random forest algorithms
  • Model evaluation methods
  • Exercise

Regression Analysis

  • Linear regression
  • Generalizations and Nonlinearity
  • Exercise

Classification

  • Bayesian refresher
  • Naive Bayes
  • Logistic regression
  • K-Nearest neighbors
  • Exercise

Hands-on: Building an Estimation Model

  • Assessing lending risk based on customer type and history

Evaluating the performance of Machine Learning Algorithms

  • Cross-validation and resampling techniques
  • Bootstrap aggregation (bagging)
  • Exercise

Modeling Business Decisions with Unsupervised Learning

  • Approaches when sample data sets are unavailable
  • K-means clustering
  • Challenges inherent in unsupervised learning
  • Techniques beyond K-means
  • Bayes networks and Markov Hidden Models
  • Exercise

Hands-on: Building a Recommendation System

  • Analyzing past customer behavior to enhance new service offerings

Extending your company's capabilities

  • Developing models in the cloud
  • Accelerating machine learning processes with GPU
  • Applying Deep Learning neural networks for computer vision, voice recognition, and text analysis

Closing Remarks

Requirements

  • Practical experience with Python programming
  • Foundational knowledge of statistics and linear algebra
 21 Hours

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