DATA SCIENCE

AND MACHINE
LEARNING

Dr. Nitin N. Sakhare Rohit B. Pardeshi

Ph.D. Computer Science & Engineering B.E. Computer
Assistant Professor, Senior Engineer,
Department of Computer Engineering, eInfochips,
Vishwakarma Institute of Information Technology, Pune.
Kondhwa, Pune.

Snehal S. Naghate Dr. Swapna S. Bhavsar

M.E. Computer Science & Information Technology Ph.D. Computer Science & Engineering
Assistant Professor, Assistant Professor,
Department of Computer Engineering, Department of Information Technology,
Ballarpur Institute of Technology, PES’s Modern College of Engineering,
Chandrapur. Pune.
Preface

We are glad to present this book entitled ‘Data Science and Machine Learning’. The world is
experiencing a data revolution where vast amounts of information are generated every second.
Data Science and Machine Learning have emerged as transformative technologies, enabling
businesses, researchers and professionals to extract meaningful insights, make informed decisions
and develop intelligent systems.

This book is designed as a comprehensive guide and lucid presentation of subject matter for
students, academicians and professionals looking to gain a strong foundation in data science and
machine learning. It covers essential concepts such as data pre-processing, exploratory data
analysis, feature engineering, supervised and unsupervised learning, deep learning, model
evaluation and real-world applications. Each chapter balances theoretical understanding with
practical implementation, ensuring a well-rounded learning experience.

One of the key highlights of this book is its hands-on approach, with numerous Python-based
examples and real-world case studies. Readers will learn how to implement machine learning
algorithms using popular libraries like NumPy, Pandas, Matplotlib, Scikit-learn and TensorFlow. By
working through the exercises and projects, readers will develop the skills needed to apply
machine learning techniques to real-world problems.

This book is suitable for beginners and experienced practitioners alike. Whether you are a
student starting your data science journey, a researcher exploring new methods or a professional
looking to upskill, this book provides a structured and practical approach to mastering the field.

We also take this opportunity to express our sincere thanks to Shri Dineshbhai Furia, Shri
Jignesh Furia, Mrs. Nirali Verma, Mrs. Deepali Lachake (coordinator) and the entire team at Nirali
Prakashan for their keen interest and tireless efforts in publishing this book.

The advice and suggestions of our esteemed readers to improve the text are most welcome and
will be highly appreciated.

Authors
Contents
1. INTRODUCTION TO DATA SCIENCE 1
1.1 Basics and Needs of Data Science and Big Data 1
1.2 Applications of Data Science 3
1.3 Data Explosion 6
1.4 5V’s of Big Data 7
1.5 Relationship between Data Science and Information Science 8
1.6 Business Intelligence vs Data Science 9
1.7 Data Science Life Cycle 10
1.8 Data: Data Types, Data Collection 12
1.9 What are Association Rules? 16
1.10 Calculating Association Rule Parameters 17
1.11 Need of Data Wrangling 19
1.12 Methods 20
1.13 Recommendation Engines 27
1.14 Recommendation Engines Working 30
1.15 Collaborative Filtering 33
1.16 Content Based Filtering 41
1.17 Case Study: Data Pre-processing using Techniques of Data Cleaning and Data
Transformation. (Use suitable dataset) 42
• Summary 43
• Exercise 44
2. DATA ANALYTICS LIFE CYCLE 45
2.1 Introduction to Big Data 45
2.2 Sources of Big Data 48
2.3 Data Analytic Lifecycle: Overview 49
2.4 Data Analytics Lifecycle Example 54
2.5 Need of Life Cycle 54
2.6 Case Study: Global Innovation Network and Analysis (Gina) 54
• Summary 60
• Exercise 60
3. STATISTICAL INFERENCE 61
3.1 Need of Statistics in Data Science and Big Data Analytics 61
3.2 Measures of Central Tendency: Mean, Median, Mode, Mid-Range 62
3.3 Measures of Dispersion: Range, Variance, Mean Deviation, Standard Deviation 72
3.4 Bayes’ Theorem 76
3.5 Basics and Need of Hypothesis and Hypothesis Testing 79
3.6 Pearson Correlation 86
3.7 Sample Hypothesis Testing 88
3.8 Chi-Square Tests, T-Test 90
3.9 Case Study: For an Employee Dataset, Create Measure of Central Tendency and Its
Measure of Dispersion for Statistical Analysis of Given Data 95
• Summary 97
• Exercise 97
4. PREDICTIVE DATA ANALYTICS WITH PYTHON 99
4.1 Introduction to Predictive Big Data Analytics 99
4.2 Essential Python Libraries and Basic Examples 102
4.3 Data Preprocessing 106
4.4 Analytics Types 123
4.5 Association Rules 129
4.6 Regression 148
4.7 Classification Requirement 154
4.8 Introduction to Scikit-Learn 171
4.9 Case Study: Use Iris Dataset from Scikit and Apply Data Preprocessing Methods 180
• Summary 186
• Exercise 186
5. INTRODUCTION TO MACHINE LEARNING 187
5.1 Introduction to Machine Learning 187
5.2 Comparison of Machine Learning with Traditional Programming 191
5.3 ML vs. AI vs. Data Science 193
5.4 Types of Learning 197
5.5 Reinforcement Learning Techniques 204
5.6 Models of Machine Learning 213
5.7 Important Elements of Machine Learning 223
• Case Study 228
• Summary 229
• Exercise 230
6. FEATURE ENGINEERING 231
6.1 Concept of Feature 231
6.2 Pre-processing of Data 234
6.3 Introduction to Dimensionality Reduction 253
6.4 Introduction to Various Feature Selection Techniques 258
6.5 Statistical Feature Engineering 271
6.6 Feature Vector Creation 278
6.7 Multidimensional Scaling 279
6.8 Matrix Factorization Techniques 280
• Summary 283
• Exercise 284
7. SUPERVISED LEARNING 285
7.1 Bias 285
7.2 Variance 286
7.3 Generalization 289
7.4 Underfitting 291
7.5 Overfitting 292
7.6 Linear Regression 293
7.7 Gradient Descent Algorithm 304
7.8 Evaluation Metrics 308
• Summary 312
• Exercise 312
8. CLASSIFICATION 313
8.1 Classification 313
8.2 Ensemble Learning 331
8.3 Binary-vs-Multiclass Classification 348
8.4 Balanced and Imbalanced Multiclass Classification Problem 350
8.5 Variants of Multiclass Classification 359
8.6 Metrics and Score 368
• Summary 373
• Exercise 374

9. DATA ANALYTICS AND MODEL EVALUATION (I) 375

9.1 Introduction to Unsupervised Learning 375
9.2 What is Clustering? 377
9.3 Cluster Analysis 381
9.4 Distance Measure 382
9.5 Using K-means for Flat Clustering 385
9.6 Using K-means from Sklearn 386
9.7 Implementing Fit and Predict Functions 389
9.8 Implementing K-Means Class 391
9.9 Partitioning Method 393
9.10 Hierarchical Methods 399
9.11 Top Down / Divisive Approach 405
9.12 Bottom Up / Agglomerative Approach 407
9.13 Linkage Metrics in Hierarchical Method 409
9.14 Working of Dendrogram in Hierarchical Clustering 414
9.15 PCA – 1 415
9.16 PCA – 2 424
• Important Formulae 449
• Summary 449
• Exercise 450

10. DATA ANALYTICS AND MODEL EVALUATION (II) 451

10.1 Time Series Analysis 451
10.2 Importance of TSA 467
10.3 Components of TSA 467
10.4 White Noise 468
10.5 AR (Auto-Regressive) Model 473
10.6 MA (Moving Average) Model 473
10.7 ARMA (Auto Regressive Moving Average) Model 474
10.8 ARIMA (Auto-Regressive Integrated Moving Average) Model 475
10.9 Stationarity 476
10.10 ACF and PACF 483
10.11 Introduction to Text Analysis 492
10.12 Need and Introduction to Social Media Analysis 507
• Important Formulae 510
• Summary 511
• Exercise 512
11. DATA ANALYTICS AND MODEL EVALUATION (III) 513
11.1 Introduction to Business Analysis 513
11.2 Model Evaluation and Selection 515
11.3 Need of Model Selection 518
11.4 Cross – Validation 519
11.5 Boosting 521
11.6 Boosting Algorithms 525
11.7 Types of Boosting Algorithms 526
11.8 Adaptive Boosting 530
11.9 Holdout Method and Random Subsampling 533
11.10 Parameter Tuning and Optimization 536
11.11 Clustering and Time-Series Analysis Using Scikit-Learn 543
11.12 [Link] 556
11.13 Classification Metrics 563
11.14 AUC-ROC 564
11.15 Log Loss 565
11.16 Elbow Method 567
11.17 Silhouette Algorithm to Choose K the Silhouette Method 570
11.18 Case Study: Use Iris Dataset from Scikit Learn and Apply K-Means Clustering
Methods 572
• Important Formulae 579
• Summary 580
• Exercise 581
12. INTRODUCTION TO NEURAL NETWORKS 583
12.1 Artificial Neural Networks 583
12.2 Back Propagation Learning 597
12.3 Functional Link Artificial Neural Network 604
12.4 Radial Basis Function 604
12.5 Activation Functions 609
12.6 Introduction to Recurrent Neural Networks 620
12.7 Convolutional Neural Networks 628
• Important Formulae 638
• Summary 639
• Exercise 640
13. NATURAL LANGUAGE PROCESSING (NLP) 641
13.1 What is NLP 641
13.2 What Is Natural Language 641
13.3 Approaches to NLP 646
13.4 Current Applications of Heuristic Methods In Natural Language Processing 648
13.5 Challenges in NLP 650
• Important Formulae 651
• Summary 652
• Exercise 652

❃❃❃
 1
Introduction to Data Science

OUTLINE

1.1 Basics and Needs of Data Science and Big Data

1.2 Applications of Data Science
1.3 Data Explosion
1.4 5V’S of Big Data
1.5 Relationship Between Data Science and Information Science
1.6 Business Intelligence vs Data Science
1.7 Data Science Life Cycle
1.8 Data: Data Types, Data Collection
1.9 What are Association Rules?
1.10 Calculating Association Rule Parametes
1.11 Need of Data Wrangling
1.12 Methods
1.13 Recommendation Engines
1.14 Recommendation Engines Working
1.15 Collaborative Filtering
1.16 Content Based Filtering
1.17 Case Study

1.1 BASICS AND NEEDS OF DATA SCIENCE AND BIG DATA

Data Science and Big Data are extremely important fields and concepts that are becoming increasingly
critical in this modern era. The world has never collected or stored as much data and as fast as it does today.
In addition, the variety and volume of data is growing at an alarming rate. Data is analogous to gold in many
ways. It is extraordinarily valuable and has many uses, but you often have to pay for it in order to realize its
value. There are many debates as to whether Data Science is a new field. Many argue that similar practices
have been used and branded as statistics, analytics, business intelligence and so forth. In either case, Data
Science is a very popular and prominent term used to describe many different data-related processes and
techniques. Big Data on the other hand is relatively new in the sense that the amount of data collected and
the associated challenges continues to require new and innovative hardware and techniques for handling it.
1.1.1 Data Science
Data Science is complex and involves many specific domains and skills, but the general definition is
that Data Science encompasses all the ways in which information and knowledge are extracted from data.
Data is everywhere and is found in huge and exponentially increasing quantities.
1
INTRODUCTION TO DATA SCIENCE 2

Data Science as a whole reflects the ways in which data is discovered, conditioned, extracted,
compiled, processed, analyzed, interpreted, modeled, visualized, reported on and presented regardless of
the size of the data being processed. Big Data (as defined soon) is a special application of Data Science.
Data Science is a very complex field, which is largely due to the diversity and number of academic
disciplines and technologies it draws upon. Data Science incorporates mathematics, statistics, computer
science and programming, statistical modeling, database technologies, signal processing, data modeling,
artificial intelligence and learning, natural language processing, visualization, predictive analytics and so
on. Data Science is highly applicable to many fields, including social media, medicine, security, health care,
social sciences, biological sciences, engineering, defence, business, economics, finance, marketing, geo-
location and many more.
1.1.2 Big Data
Big Data is essentially a special application of Data Science, in which the data sets are enormous and
require overcoming logistical challenges to deal with them. The primary concern is efficiently capturing,
storing, extracting, processing and analyzing information from these enormous data sets. Processing and
analysis of these huge data sets is often not feasible or achievable due to physical and/or computational
constraints. Special techniques and tools (e.g., software, algorithms, parallel programming, etc.) are
therefore required. Big Data is the term that is used to encompass these large data sets, specialized
techniques and customized tools. It is often applied to large data sets in order to perform general data
analysis and find trends or to create predictive models. Large amounts of data are gathered from mobile
devices, remote sensing devices, geo-location, software applications, multimedia devices, radio-frequency
identification readers, wireless sensor networks and so on. A primary component of Big Data is the so-
called Three Vs (3Vs) model. This model represents the characteristics and challenges of Big Data as
dealing with Volume, Variety and Velocity. Companies such as IBM include a fourth “V”, Veracity, while
Wikipedia also notes variability. Big Data essentially aims to solve the problem of dealing with enormous
amounts of varying-quality data, often of many different types, that is being captured and processed
sometimes at tremendous (real-time) speeds. No easy task to say the least. So in summary, Big Data can be
thought of being a relative term that applies to huge data sets that require an entity (person, company, etc.)
to leverage specialized hardware, software, processing techniques, visualization and database technologies
in order to solve the problems associated with the 3Vs and similar characteristic models.
1.1.3 Types of Data and Data Sets
Data is collected in many different ways as mentioned earlier. The life cycle of usable data usually
involves capture, pre-processing, storage, retrieval, post-processing, analysis, visualization and so on. Once
captured, data is usually referred to as being structured, semi-structured or unstructured. These distinctions
are important because they are directly related to the type of database technologies and storage required, the
software and methods by which the data is queried and processed and the complexity of dealing with the
data. Structured data refers to data that is stored as a model (or is defined by a structure or schema) in a
relational database or spreadsheet. Often, it is easily queryable using SQL (Structured Query Language)
since the “structure” of the data is known. A sales order record is a good example. Each sales order has a
purchase date, items purchased, purchaser, total cost, etc. Unstructured data is data that is not defined by
any schema, model or structure and is not organized in a specific way. In other words, it is just stored raw
data. Think of a seismometer (earthquakes are a big fear of mine by the way!). You have probably seen the
squiggly lines captured by such a device, which essentially represent energy data as recorded at each
seismometer location. The recorded signal (that is data) represents a varying amount of energy over time.
There is no structure in this case, it is just variations of energy represented by the signal. It follows naturally
that Semi-structured data is a combination of the two. It is basically unstructured data that also has
structured data (a.k.a. metadata) appended to it. Every time you use your smartphone to take a picture, the
shutter captures light reflection information as a bunch of binary data (i.e., ones and zeros). This data has no
structure to it, but the camera also appends additional data that includes the date and time the photo was
taken, last time it was modified, image size, etc. That is the structured part. Data formats such as XML and
JSON are also considered to be semi-structured data.
INTRODUCTION TO DATA SCIENCE 3

TIPS
1. Data Science focuses on extracting knowledge and insights from data using techniques from
mathematics, statistics, programming and AI, making it applicable across various fields like
healthcare, business and engineering.
2. Big Data deals with massive datasets requiring specialized tools and techniques to address
challenges related to Volume, Variety and Velocity, along with Veracity in some models.
3. Data can be categorized into structured (organized and schema-defined), unstructured (raw
and unorganized) and semi-structured (a mix of both, like metadata in JSON or XML formats).

1.2 APPLICATIONS OF DATA SCIENCE

The role of Data Science Applications has not evolved overnight. Thanks to faster computing and
cheaper storage, we can now predict outcomes in minutes, which could take several human hours to process.
1.2.1 Fraud and Risk Detection
The earliest applications of Data Science were in Finance. Companies were fed up of bad debts and
losses every year. However, they had a lot of data which use to get collected during the initial paperwork
while sanctioning loans. They decided to bring in data scientists in order to rescue them out of losses. Over
the years, banking companies learned to divide and conquer data via customers profiling, past expenditures
and other essential variables to analyze the probabilities of risk and default. Moreover, it also helped them
to push their banking products based on customer’s purchasing power.
1.2.2 Healthcare
The healthcare sector, especially, receives great benefits from Data Science applications.
1. Medical Image Analysis
4
3.9
3.8
Radiation necrosis

3.7
3.6
3.5
3.4
3.3
3.2
3.1
3

4
3.9
3.8
Tumor recurrence

3.7
3.6
3.5
3.4
3.3
3.2
3.1
3
Fig. 1
INTRODUCTION TO DATA SCIENCE 4

Procedures such as detecting tumours, artery stenosis and organ delineation employ various different
methods and frameworks like MapReduce to find optimal parameters for tasks like lung texture
classification. It applies Machine Learning Methods, Support Vector Machines (SVM), content-based
medical image indexing and wavelet analysis for solid texture classification.
2. Genetics and Genomics
Data Science applications also enable an advanced level of treatment personalization through research
in genetics and genomics. The goal is to understand the impact of the DNA on our health and find
individual biological connections between genetics, diseases and drug response. Data Science techniques
allow integration of different kinds of data with genomic data in the disease research, which provides a
deeper understanding of genetic issues in reactions to particular drugs and diseases. As soon as we acquire
reliable personal genome data, we will achieve a deeper understanding of the human DNA. The advanced
genetic risk prediction will be a major step towards more individual care.
3. Drug Development
The drug discovery process is highly complicated and involves many disciplines. The greatest ideas are
often bounded by billions of testing, huge financial and time expenditure. On average, it takes twelve years
to make an official submission. Data Science applications and machine learning algorithms simplify and
shorten this process, adding a perspective to each step from the initial screening of drug compounds to the
prediction of the success rate based on the biological factors. Such algorithms can forecast how the
compound will act in the body using advanced mathematical modeling and simulations instead of the “lab
experiments”. The idea behind the computational drug discovery is to create computer model simulations as
a biologically relevant network simplifying the prediction of future outcomes with high accuracy.
4. Virtual Assistance for Patients and Customer Support
Optimization of the clinical process builds upon the concept that for many cases it is not actually
necessary for patients to visit doctors in person. A mobile application can give a more effective solution by
bringing the doctor to the patient instead. The AI-powered mobile apps can provide basic healthcare
support, usually as chatbots. You simply describe your symptoms or ask questions and then receive key
information about your medical condition derived from a wide network linking symptoms to causes. Apps
can remind you to take your medicine on time and if necessary, assign an appointment with a doctor. This
approach promotes a healthy lifestyle by encouraging patients to make healthy decisions, saves their time
waiting in line for an appointment and allows doctors to focus on more critical cases.
1.2.3 Internet Search
Now, this is probably the first thing that strikes your mind when you think Data Science Applications.
When we speak of search, we think ‘Google’. Right? But there are many other search engines like Yahoo,
Bing, Ask, AOL and so on. All these search engines (including Google) make use of Data Science
algorithms to deliver the best result for our searched query in a fraction of seconds. Considering the fact
that, Google processes more than 20 petabytes of data every day. Had there been no Data Science, Google
would not have been the ‘Google’ we know today.
1.2.4 Targeted Advertising
If you thought search would have been the biggest of all Data Science applications, here is a challenger
– the entire digital marketing spectrum. Starting from the display banners on various websites to the digital
billboards at the airports – almost all of them are decided by using Data Science algorithms. This is the
reason why digital ads have been able to get a lot higher CTR (Call-Through Rate) than traditional
advertisements. They can be targeted based on a user’s past behavior.
INTRODUCTION TO DATA SCIENCE 5

1.2.5 Website Recommendations

Are not we all used to the suggestions about similar products on Amazon? They not only help you find
relevant products from billions of products available with them but also adds a lot to the user experience. A
lot of companies have fervidly used this engine to promote their products in accordance with user’s interest
and relevance of information. Internet giants like Amazon, Twitter, Google Play, Netflix, Linkedin, IMDb
and many more use this system to improve the user experience. The recommendations are made based on
previous search results for a user.
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1.2.6 Advanced Image Recognition
You upload your image with friends on Facebook and you start getting suggestions to tag your friends.
This automatic tag suggestion feature uses face recognition algorithm. In their latest update, Facebook has
outlined the additional progress they have made in this area, making specific note of their advances in
image recognition accuracy and capacity. We have witnessed massive advances in image classification
(what is in the image?) as well as object detection (where are the objects?), but this is just the beginning of
understanding the most relevant visual content of any image or video. Recently we have been designing
techniques that identify and segment each and every object in an image, a key capability that will enable
entirely new applications. In addition, Google provides you with the option to search for images by
uploading them. It uses image recognition and provides related search results.
1.2.7 Speech Recognition
Some of the best examples of speech recognition products are Google Voice, Siri, Cortana, etc. Using
speech-recognition feature, even if you are not in a position to type a message, your life would not stop.
Simply speak out the message and it will be converted to text. However, at times, you would realize, speech
recognition does not perform accurately.
1.2.8 Airline Route Planning
Airline Industry across the world is known to bear heavy losses. Except for a few airline service
providers, companies are struggling to maintain their occupancy ratio and operating profits. With high rise
in air-fuel prices and need to offer heavy discounts to customers has further made the situation worse. It was
not for long when airlines companies started using Data Science to identify the strategic areas of
improvements. Now using Data Science, the airline companies can:
(a) Predict flight delay.
(b) Decide which class of airplanes to buy.
INTRODUCTION TO DATA SCIENCE 6

(c) Whether to directly land at the destination or take a halt in between (For example, A flight can
have a direct route from New Delhi to New York. Alternatively, it can also choose to halt in any
country).
(d) Effectively drive customer loyalty programs.
Southwest Airlines, Alaska Airlines are among the top companies who have embraced Data Science to
bring changes in their way of working.
1.2.9 Gaming
Games are now designed using machine learning algorithms which improve/upgrade themselves as the
player moves up to a higher level. In motion gaming also, your opponent (computer) analyzes your previous
moves and accordingly shapes up its game. EA Sports, Zynga, Sony, Nintendo, Activision-Blizzard have
led gaming experience to the next level using Data Science.
1.2.10 Augmented Reality
This is the final of the Data Science application which seems most exciting in the future. Data Science
and Virtual Reality do have a relationship, considering a VR headset contains computing knowledge,
algorithms and data to provide you with the best viewing experience. A very small step towards this is the
high trending game of Pokemon GO. The ability to walk around things and look at Pokemon on walls,
streets, things that are not really there. The creators of this game used the data from Ingress, the last app
from the same company, to choose the locations of the Pokemon and gyms. However, Data Science makes
more sense once VR economy becomes accessible in terms of pricing and consumer use it often like other
apps. Though, not much has been revealed about them except the prototypes and neither do we know when
they would be available for a common man’s disposal. Let’s see, what amazing Data Science applications
the future holds for us!

TIPS
1. Fraud and Risk Detection: Used extensively in finance to analyze customer profiles, spending
patterns and risk probabilities to minimize losses and defaults.
2. Healthcare Applications: Data Science enhances medical image analysis, genomics, drug
development and patient support through predictive models and AI-powered applications.
3. Internet Search and Recommendations: Search engines and platforms like Google and
Amazon use Data Science algorithms to deliver precise results and personalized
recommendations in real-time.

1.3 DATA EXPLOSION

The world is currently used to sparing everything without exception in the electronic space. Processing
power, RAM speeds and hard-disk sizes have expanded to level that has changed our viewpoint towards
data and its storage. Would you be able to envision having 256 or 512 MB RAM in your PC now? On the
off chance that we comprehend idea of byte, we can envision how data growth has expanded over time and
how storage systems handle it. We know that 1 byte is equivalent to 8 bits and these 8 bits can represent
character or expression. An archive with huge number of bytes will contain huge number of characters,
expressions and spaces etc. Similarly, Megabyte (MB) is million bytes of information, Gigabyte (GB) is
billion bytes of information and Terabyte (TB) is trillion bytes of information. We use these terms while
managing data and storage, on our everyday activities. But it does not end here. Next comes the Petabyte,
which is quadrillion bytes or million gigabytes. Ones after that are Exabyte, Zettabyte and Yottabyte.
Yottabyte is basically trillion Terabytes of information. There are considerably higher numbers and we will
stop here now. The rapid or exponential increase in the amount of data that is generated and stored in the
computing systems, that reaches level where data management becomes difficult, is called “Data
Explosion”.