Commonly used Machine Learning Algorithms

Linear regression, logistic regression, Naive Bayes, kNN, Random forest, etc.

1. Supervised Learning

How it works: This algorithm consist of a target / outcome variable (or dependent variable) which is to be
predicted from a given set of predictors (independent variables). Using these 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

How it works: In this algorithm, we do not have any target or outcome variable to predict / estimate. It is
used for clustering population in different groups, which is widely used for segmenting customers in
different groups for specific intervention. Examples of Unsupervised Learning: Apriori algorithm, K-means.

3. Reinforcement Learning:

How it works: 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

List of Common Machine Learning Algorithms

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, etc
1. Linear Regression
It is used to estimate real values (cost of houses, number of calls, total sales etc.) based on continuous
variable(s). Here, we establish relationship between independent and dependent variables by fitting a
best line. This best fit line is known as regression line and represented by a linear equation Y= a *X + b.

In this equation:

 Y – Dependent Variable
 a – Slope
 X – Independent variable
 b – Intercept

These coefficients a and b are derived based on minimizing the sum of squared difference of distance
between data points and regression line.

Look at the below example. Here we have identified the best fit line having linear
equation y=0.2811x+13.9. Now using this equation, we can find the weight, knowing the height of a
person.

Linear Regression is mainly of two types: Simple Linear Regression and Multiple Linear Regression.
Simple Linear Regression is characterized by one independent variable. And, Multiple Linear
Regression(as the name suggests) is characterized by multiple (more than 1) independent variables.
While finding the best fit line, you can fit a polynomial or curvilinear regression. And these are known as
polynomial or curvilinear regression.

2. Logistic Regression
It is a classification not a regression algorithm. It is used to estimate discrete values ( Binary values like
0/1, yes/no, true/false ) based on given set of independent variable(s). In simple words, it predicts the
probability of occurrence of an event by fitting data to a logit function. Hence, it is also known as logit
regression. Since, it predicts the probability, its output values lies between 0 and 1 (as expected).
Let’s say your friend gives you a puzzle to solve. There are only 2 outcome scenarios – either you solve it
or you don’t. Now imagine, that you are being given wide range of puzzles / quizzes in an attempt to
understand which subjects you are good at. The outcome to this study would be something like this – if
you are given a trignometry based tenth grade problem, you are 70% likely to solve it. On the other hand,
if it is grade fifth history question, the probability of getting an answer is only 30%. This is what Logistic
Regression provides you.

Coming to the math, the log odds of the outcome is modeled as a linear combination of the predictor
variables.

odds= p/ (1-p) = probability of event occurrence / probability of not event occurrence

ln(odds) = ln(p/(1-p))

logit(p) = ln(p/(1-p)) = b0+b1X1+b2X2+b3X3....+bkXk

Above, p is the probability of presence of the characteristic of interest. It chooses parameters that
maximize the likelihood of observing the sample values rather than that minimize the sum of squared
errors (like in ordinary regression).

3. Decision Tree
It is a type of supervised learning algorithm that is mostly used for classification problems. Surprisingly, it
works for both categorical and continuous dependent variables. In this algorithm, we split the population
into two or more homogeneous sets. This is done based on most significant attributes/ independent
variables to make as distinct groups as possible.

In the image above, you can see that population is classified into four different groups based on multiple
attributes to identify ‘if they will play or not’. To split the population into different heterogeneous groups, it
uses various techniques like Gini, Information Gain, Chi-square, entropy.

The best way to understand how decision tree works, is to play Jezzball – a classic game from Microsoft
(image below). Essentially, you have a room with moving walls and you need to create walls such that
maximum area gets cleared off with out the balls.

So, every time you split the room with a wall, you are trying to create 2 different populations with in the
same room. Decision trees work in very similar fashion by dividing a population in as different groups as
possible.
4. SVM (Support Vector Machine)
It is a classification method. In this algorithm, we plot each data item as a point in n-dimensional space
(where n is number of features you have) with the value of each feature being the value of a particular
coordinate.

For example, if we only had two features like Height and Hair length of an individual, we’d first plot these
two variables in two dimensional space where each point has two co-ordinates (these co-ordinates are
known as Support Vectors)

Now, we will find some line that splits the data between the two differently classified groups of data. This
will be the line such that the distances from the closest point in each of the two groups will be farthest
away.

In the example shown above, the line which splits the data into two differently classified groups is
the black line, since the two closest points are the farthest apart from the line. This line is our classifier.
Then, depending on where the testing data lands on either side of the line, that’s what class we can
classify the new data as.
5. Naive Bayes
It is a classification technique based on Bayes’ theorem with an assumption of independence
between predictors. In simple terms, a Naive Bayes classifier assumes that the presence of a
particular feature in a class is unrelated to the presence of any other feature. For example, a fruit
may be considered to be an apple if it is red, round, and about 3 inches in diameter. Even if these
features depend on each other or upon the existence of the other features, a naive Bayes classifier
would consider all of these properties to independently contribute to the probability that this fruit
is an apple.

Naive Bayesian model is easy to build and particularly useful for very large data sets. Along with
simplicity, Naive Bayes is known to outperform even highly sophisticated classification
methods.

Bayes theorem provides a way of calculating posterior probability P(c|x) from P(c), P(x) and P(x|c). Look
at the equation below:

Here,

 P(c|x) is the posterior probability of class (target) given predictor (attribute).

 P(c) is the prior probability of class.
 P(x|c) is the likelihood which is the probability of predictor given class.
 P(x) is the prior probability of predictor.

Example: Let’s understand it using an example. Below I have a training data set of weather and
corresponding target variable ‘Play’. Now, we need to classify whether players will play or not
based on weather condition. Let’s follow the below steps to perform it.

 Step 1: Convert the data set to frequency table

 Step 2: Create Likelihood table by finding the probabilities like Overcast probability = 0.29 and
probability of playing is 0.64.
Step 3: Now, use Naive Bayesian equation to calculate the posterior probability for each class. The class
with the highest posterior probability is the outcome of prediction.

Problem: Players will pay if weather is sunny, is this statement is correct?

We can solve it using above discussed method, so P(Yes | Sunny) = P( Sunny | Yes) * P(Yes) / P (Sunny)

Here we have P (Sunny |Yes) = 3/9 = 0.33, P(Sunny) = 5/14 = 0.36, P( Yes)= 9/14 = 0.64

Now, P (Yes | Sunny) = 0.33 * 0.64 / 0.36 = 0.60, which has higher probability.

Naive Bayes uses a similar method to predict the probability of different class based on various attributes.
This algorithm is mostly used in text classification and with problems having multiple classes.

6. kNN (k- Nearest Neighbors)

It can be used for both classification and regression problems. However, it is more widely used in
classification problems in the industry. K nearest neighbors is a simple algorithm that stores all available
cases and classifies new cases by a majority vote of its k neighbors. The case being assigned to the
class is most common amongst its K nearest neighbors measured by a distance function.

These distance functions can be Euclidean, Manhattan, Minkowski and Hamming distance. First three
functions are used for continuous function and fourth one (Hamming) for categorical variables. If K = 1,
then the case is simply assigned to the class of its nearest neighbor. At times, choosing K turns out to be
a challenge while performing kNN modeling.
KNN can easily be mapped to our real lives. If you want to learn about a person, of whom you have no
information, you might like to find out about his close friends and the circles he moves in and gain access
to his/her information!

Things to consider before selecting kNN:

 KNN is computationally expensive

 Variables should be normalized else higher range variables can bias it
 Works on pre-processing stage more before going for kNN like an outlier, noise removal

7. K-Means
It is a type of unsupervised algorithm which solves the clustering problem. Its procedure follows a simple
and easy way to classify a given data set through a certain number of clusters (assume k clusters). Data
points inside a cluster are homogeneous and heterogeneous to peer groups.

Remember figuring out shapes from ink blots? k means is somewhat similar this activity. You look at the
shape and spread to decipher how many different clusters / population are present!

How K-means forms cluster:

1. K-means picks k number of points for each cluster known as centroids.

2. Each data point forms a cluster with the closest centroids i.e. k clusters.
 3. Finds the centroid of each cluster based on existing cluster members. Here we have new
centroids.
4. As we have new centroids, repeat step 2 and 3. Find the closest distance for each data point from
new centroids and get associated with new k-clusters. Repeat this process until convergence
occurs i.e. centroids does not change.

How to determine value of K:

In K-means, we have clusters and each cluster has its own centroid. Sum of square of difference between
centroid and the data points within a cluster constitutes within sum of square value for that cluster. Also,
when the sum of square values for all the clusters are added, it becomes total within sum of square value
for the cluster solution.

We know that as the number of cluster increases, this value keeps on decreasing but if you plot the result
you may see that the sum of squared distance decreases sharply up to some value of k, and then much
more slowly after that. Here, we can find the optimum number of cluster.

8. Random Forest
Random Forest is a trademark term for an ensemble of decision trees. In Random Forest, we’ve
collection of decision trees (so known as “Forest”). To classify a new object based on attributes, each tree
gives a classification and we say the tree “votes” for that class. The forest chooses the classification
having the most votes (over all the trees in the forest).

Each tree is planted & grown as follows:

1. If the number of cases in the training set is N, then sample of N cases is taken at random but with
replacement. This sample will be the training set for growing the tree.
2. If there are M input variables, a number m<<M is specified such that at each node, m variables
are selected at random out of the M and the best split on these m is used to split the node. The
value of m is held constant during the forest growing.
3. Each tree is grown to the largest extent possible. There is no pruning.
9. Dimensionality Reduction Algorithms
In the last 4-5 years, there has been an exponential increase in data capturing at every possible stages.
Corporates/ Government Agencies/ Research organisations are not only coming with new sources but
also they are capturing data in great detail.

For example: E-commerce companies are capturing more details about customer like their demographics,
web crawling history, what they like or dislike, purchase history, feedback and many others to give them
personalized attention more than your nearest grocery shopkeeper.

As a data scientist, the data we are offered also consist of many features, this sounds good for building
good robust model but there is a challenge. How’d you identify highly significant variable(s) out 1000 or
2000? In such cases, dimensionality reduction algorithm helps us along with various other algorithms like
Decision Tree, Random Forest, PCA, Factor Analysis, Identify based on correlation matrix, missing value
ratio and others.