Lecture-5-HCL-DSE - Sumita Narang-2

Data Science Process
Lecture – 4, 5 (Part-2)
Sumita Narang
Objectives
Data Science methodology

– Business understanding
– Data Requirements
– Data Acquisition
– Data Understanding
– Data preparation
– Modelling
– Model Evaluation
– Deployment and feedback
Case Study
Data Science Proposal
– Samples
– Evaluation
– Review Guide
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Stage 4: Data Modelling
• Split correctly the data

• Choose a measure of success. Set an evaluation
protocol and the different protocols available.
• Develop a benchmark model
• Choose an adequate model and tune it to get the best
performance possible. An overview of how a model
learns.
• What is regularization and when is appropriate to use it.
• Differentiate between over and under fitting, defining
what they are and explaining the best ways to avoid
them
4
Modelling & Evaluation
1. Data Model Development & experiment framework setup

• Data Modelling based on training sets
• Framework to feed in new data and test the models
• Framework to change training data and retrain model based on new data sets
as sliding window
• 3 main tasks involved -
• Feature Engineering: Create data features from the raw data to facilitate
model training
• Model Training: Find the model that answers the question most accurately
by comparing their success metrics
• Determine if your model is suitable for production
2. Data Model Evaluation & KPI Checks

• Read papers, research material to finalize the algorithmic approaches

Define Appropriately the
Problem
The first, and one of the most critical things to do, is to find out what are the
inputs and the expected outputs. The following questions must be answered:
• What is the main objective? What are we trying to predict?

• What are the target features?
• What is the input data? Is it available?
• What kind of problem are we facing? Binary classification? Clustering?
• What is the expected improvement?
• What is the current status of the target feature?
• How is going to be measured the target feature?
5
BITS Pilani, Pilani Campus
Choose a Measure of Success
“If you can’t measure it you can’t improve it”.
If you want to control something it should be observable, and in order to

achieve success, it is essential to define what is considered success: Maybe
precision? accuracy? Customer-retention rate?
This measure should be directly aligned with the higher level goals of the
business at hand. And it is also directly related with the kind of problem we are
facing:
• Regression problems use certain evaluation metrics such as mean squared

error (MSE).
• Classification problems use evaluation metrics as precision, accuracy and
recall.
8
Setting an Evaluation Protocol 1/
Maintaining a Hold Out Validation Set
This method consists on setting apart some portion of the data as the test set.
The process would be to train the model with the remaining fraction of the data,
tuning its parameters with the validation set and finally evaluating its
performance on the test set.
The reason to split data in three parts is to avoid information leaks. The main
inconvenient of this method is that if there is little data available, the validation
and test sets will contain so few samples that the tuning and evaluation
processes of the model will not be effective.
This is a simple kind of cross validation technique, also

known as the holdout method. Although this method
doesn’t take any overhead to compute and is better than
traditional validation, it still suffers from issues of high
variance. This is because it is not certain which data points
will end up in the validation set and the result might be
entirely different for different sets.
Reduce Bias Error Reduce
Variance Error
9
K-Fold Validation Method
K-Fold consists in splitting the data into K partitions of equal size. For each
partition i, the model is trained with the remaining K-1 partitions and it is
evaluated on partition i.
The final score is the average of the K scored obtained. This technique is
specially helpful when the performance of the model is significantly different
from the train-test split.
As there is never enough data to train your
model, removing a part of it for validation poses a
problem of under-fitting. By reducing the training
data, we risk losing important patterns/ trends in data set,
which in turn increases error induced by bias. So, what
we require is a method that provides ample data for
training the model and also leaves ample data for
validation. K Fold cross validation does exactly that.
K-fold cross validation significantly reduces bias as

we are using most of the data for fitting, and also
significantly reduces variance as most of the data
is also being used in validation set.
10
Cross-Validation (1/3)
• Cross-Validation is a very useful technique for assessing the performance
of machine learning models.
• Helps in knowing how the machine learning model would generalize to an

independent data set.
• Helps in estimating how accurate the predictions will be in practice.
• We are given two type of data sets: known data set (training data set) and
unknown data set (test data set).
• There are different types of Cross-Validation techniques but the overall

concept remains the same:
o To partition the overall dataset into a number of subsets
o Hold out a subset at a time and train the model on remaining subsets
o Test model on hold out subset
Sources: https://towardsdatascience.com/cross-validation-explained-evaluating-estimator-performance-e51e5430ff85
https://magoosh.com/data-science/k-fold-cross-validation/
19 BAZG523(Introduction to Data Science)
https://towardsdatascience.com/cross-validation-in-machine-learning-72924a69872f
K-Fold Cross-Validation: If k=5 the dataset will be divided into 5 equal parts
and the below process will run 5 times, each time with a different holdout set.
1. Take a group as a test data set
2. Take the remaining groups as a training data set
3. Fit a model on the training set and evaluate it on the test data set
4. Retain the evaluation score and discard the model
At the end of the above process summarize the skill of the model using the
average of model evaluation scores.
Leave One Out Cross-Validation : It is K-fold cross validation taken to its
logical extreme, with K equal to N, the number of data points in the dataset.
Stratified K-Fold Cross validation

In some cases, there may be a large imbalance in the response
variables. For example, in dataset concerning price of houses, there
might be large number of houses having high price. Or in case of
classification, there might be several times more negative samples
than positive samples.
For such problems, a slight variation in the K Fold cross validation

technique is made, such that each fold contains approximately
the same percentage of samples of each target class as the
complete set, or in case of prediction problems, the mean
response value is approximately equal in all the folds. This
variation is also known as Stratified K Fold.

Iterated K-Fold Validation with Shuffling (Random Sub-sampling)
It consist on applying K-Fold validation several times and shuffling the data
every time before splitting it into K partitions. The Final score is the average of
the scores obtained at the end of each run of K-Fold validation.
This method can be very computationally expensive, as the number of trained

and evaluating models would be I x K times. Being I the number of iterations
and K the number of partitions.
Above explained validation techniques are also referred to as Non-exhaustive cross

validation methods. These do not compute all ways of splitting the original sample, i.e.
you just have to decide how many subsets need to be made.
11
Non-Exhaustive & Exhaustive
Cross-Validation Techniques
References-
1. https://towardsdatascience.com/cross-validation-in-machine-learning-72924a69872f
2. https://blog.contactsunny.com/data-science/different-types-of-validations-in-machin
e-learning-cross-validation

Exhaustive Cross Validation
Methods 1/
Exhaustive Methods, that computes all possible ways the data can
be split into training and test sets.
Leave-P-Out Cross Validation
This approach leaves p data points out of training data, i.e. if there
are n data points in the original sample then, n-p samples are
used to train the model and p points are used as the validation
set.
This is repeated for all combinations in which original sample can
be separated this way, and then the error is averaged for all
trials, to give overall effectiveness.
This method is exhaustive in the sense that it needs to train and
validate the model for all possible combinations, and for
moderately large p, it can become computationally infeasible.

Exhaustive Cross Validation
Methods 2/
Leave-1-Out Cross Validation
A particular case of this method is when p = 1. This is
known as Leave one out cross validation. This
method is generally preferred over the previous one
because it does not suffer from the intensive
computation, as number of possible combinations is
equal to number of data points in original sample or
n.

Predictive Modelling
Predictive modeling refers to the task of building a model for the target variable
as a function of the explanatory variables. There are two types of predictive
modeling tasks:
• Classification, which is used for discrete target variables, and regression,
which is used for continuous target variables. For example, predicting whether
a Web user will make a purchase at an online bookstore is a classification
task because the target variable is binary-valued.
• On the other hand, forecasting the future price of a stock is a regression task
because price is a continuous-valued attribute. The goal of both tasks is to
learn a model that minimizes the error between the predicted and true values
of the target variable.
Predictive modeling can be used to identify customers that will respond to a

marketing campaign, predict disturbances in the Earth's ecosystem, or judge
whether a patient has a particular disease based on the results of medical tests.

Classification Predictive
Modelling Techniques
In classification problems, we use two types of algorithms (dependent on the kind
of output it creates):
• Class output: Algorithms like SVM and KNN create a class output. For
instance, in a binary classification problem, the outputs will be either 0 or 1.
However, today we have algorithms which can convert these class outputs to
probability. But these algorithms are not well accepted by the statistics
community.
• Probability output: Algorithms like Logistic Regression, Random Forest,
Gradient Boosting, Adaboost etc. give probability outputs. Converting probability
outputs to class output is just a matter of creating a threshold probability.
Classification Algorithms vs Clustering Algorithms

In clustering, the idea is not to predict the target class as in classification, it’s more
ever trying to group the similar kind of things by considering the most satisfied
condition, all the items in the same group should be similar and no two
different group items should not be similar.

Developing a Benchmark
model
Benchmarking is the process of comparing your result to existing
methods. You may compare to published results using another
paper, for example. If there is no other obvious methodology against
which you can benchmark, you might compare to the best naive
solution (guessing the mean, guessing the majority class, etc.) or a
very simple model (a simple regression, K Nearest Neighbors). If
the field is well studied, you should probably benchmark against the
current published state of the art (and possibly against human
performance when relevant).
Null Model Bayes rate model

Single-variable models (e.g Pivot tables)
https://towardsdatascience.com/creating-benchmark-models-the-scikit-learn-way-af227f6ea97
7
17
BITS Pilani, Deemed to be University under Section 3 of UGC
BITS Pilani, PilaniAct, 1956
Campus
Null Model – Null Hypothesis
Null model for Univariate regression model –
Y=α + β1X+ ϵ
Null hypothesis would normally be that β1 is statistically no different from zero.
– H0: β1=0 (null hypothesis)
– HA: β1≠0 (alternative hypothesis)
For a univariate linear model, such as the above, if we were to reject the alternative
hypothesis then we could drop β1X from the linear model and we'd be left with
Y=α+ϵ
this is your Null model and the same as mean of Y.
Null Model (Single Variable Models) for Bi-variate regression model -
where x1 contains the predictors you know are affecting the outcome, so are not wanting to
test, while x2 contains the predictors you are testing.
So the null hypothesis will be β 2=0 and the null model would be –

Naive Bayes Classifier
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.
Bayes theorem: This theorem helps to calculate conditional probability of occurrence of a
hypothesis H, if the Evidence E is true, given the prior probability of H, and probability of
occurrence of Evidence E.
P(H|E) = P(E|H) . P(H) / P (E)
https://www.khanacademy.org/partner-content/wi-phi/wiphi-critical-thinking/wiphi-fundament
als/v/bayes-theorem Example –
P(H|E)  To find the conditional probability that
I have Dengu, given the evidence that I show
symptoms of Head ache.
Given -
P(H) = Prior Probability that I can have a disease
like Dengu
P(E) = Probability that I can have head ache (due
to any reason – dengu or not dengu)
P(E|H) = Probability that I can have Head ache,
given the condition that I have dengu

Linear Classifiers
- Naive Bayes classifier

How Naive Bayes algorithm
works?
https://www.analyticsvidhya.com/blog/2017/09/naive-bayes-explained/
It is easy and fast to predict class of test data set. It also perform well in
multi class prediction
Step 1: Convert the data set into a 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.

How Naive Bayes algorithm
works?
Problem: Players will play if weather is sunny. Is this statement is
correct?
We can solve it using above discussed method of posterior
probability.
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.

Stage 5: Model Evaluation
Metrics
Performance Metrics vary based on type of models i.e.
Classification Models, Clustering Models, Regression
Models.
https://www.analyticsvidhya.com/blog/2019/08/11-important-model-evaluation-error-metrics/
Validating models
Identifying common model problems
Bias - Systematic Error

Variance - Undesirable (but non-systematic) distance
between predictions and actual values.
Overfit
Nonsignificance: A model that appears to show an
important relation when in fact the relation may not hold
in the general population, or equally good predictions
can be made without the relation.
29
Validating models
30
Ensuring model quality
Testing On Hold Out Data
k-fold cross-validation
The idea behind k-fold cross-validation is to repeat the construction
of the model on different subsets of the available training data and
then evaluate the model only on data not seen during construction.
This is an attempt to simulate the performance of the model on
unseen future data.
Significance Testing
“What is your p-value?” 31
Balancing Bias & Variance to
Control Errors in Machine Learning
https://towardsdatascience.com/balancing-bias-and-variance-to-control-errors-in-machine-learning-16ced95724db
Y = f(X) + e
Estimation of this relation or f(X) is known as statistical learning. On general, we won’t be able to make a perfect estimate
of f(X), and this gives rise to an error term, known as reducible error. The accuracy of the model can be improved
by making a more accurate estimate of f(X) and therefore reducing the reducible error. But, even if we make a
100% accurate estimate of f(X), our model won’t be error free, this is known as irreducible error (e in the above
equation). The quantity e may contain unmeasured variables that are useful in predicting Y : since we don’t
measure them, f cannot use them for its prediction. The quantity e may also contain unmeasurable variation.
Bias
Bias refers to the error that is introduced by approximating a real-life problem, which may be extremely
complicated, by a much simpler model. So, if the true relation is complex and you try to use linear regression,
then it will undoubtedly result in some bias in the estimation of f(X). No matter how many observations you have, it is
impossible to produce an accurate prediction if you are using a restrictive/ simple algorithm, when the true relation is
highly complex.
Variance
Variance refers to the amount by which your estimate of f(X) would change if we estimated it using a di fferent
training data set. Since the training data is used to fit the statistical learning method, different training data sets will
result in a different estimation. But ideally the estimate for f(X) should not vary too much between training sets.
However, if a method has high variance then small changes in the training data can result in large changes in f(X).
A general rule is that, as a statistical method tries to match data points more closely or when a more flexible
method is used, the bias reduces, but variance increases.
In order to minimize the expected test error, we need to select a statistical learning method that simultaneously
achieves low variance and low bias.

Regularization 1/
https://towardsdatascience.com/regularization-in-machine-learning-76441ddcf99a
This is a form of regression, that constrains/ regularizes or shrinks the coefficient
estimates towards zero. In other words, this technique discourages learning a
more complex or flexible model, so as to avoid the risk of overfitting.
A simple relation for linear regression looks like this. Here Y represents the learned
relation and β represents the coefficient estimates for different variables or
predictors(X).
Y ≈ β0 + β1X1 + β2X2 + …+ βpXp
The fitting procedure involves a loss function, known as residual sum of squares or RSS.
The coefficients are chosen, such that they minimize this loss function. Now,
this will adjust the coefficients based on your training data. If there is noise in the
training data, then the estimated coefficients won’t generalize well to the future data.
This is where regularization comes in and shrinks or regularizes these learned
estimates towards zero.

Regularization 2/
Ridge Regression
Above image shows ridge regression, where the RSS is modified by adding the shrinkage
quantity. Now, the coefficients are estimated by minimizing this function. Here, λ is the tuning
parameter that decides how much we want to penalize the flexibility of our model. The
increase in flexibility of a model is represented by increase in its coefficients, and if we want to
minimize the above function, then these coefficients need to be small. This is how the Ridge
regression technique prevents coefficients from rising too high.
Lasso Regression
What does Regularization achieve?

A standard least squares model tends to have some variance in it, i.e. this model won’t generalize
well for a data set different than its training data. Regularization, significantly reduces the
variance of the model, without substantial increase in its bias. So the tuning parameter λ,
used in the regularization techniques described above, controls the impact on bias and variance.
As the value of λ rises, it reduces the value of coefficients and thus reducing the variance. Till a
point, this increase in λ is beneficial as it is only reducing the variance(hence avoiding
overfitting), without loosing any important properties in the data. But after certain value, the
model starts loosing important properties, giving rise to bias in the model and thus underfitting.
Therefore, the value of λ should be carefully selected.

Stage 6 - Data Visualization &
Interpret Results
Communicate
information
• more effectively
Analyze data to
• Share and persuade
support reasoning
(visual explanation)
• Understand your
Record Information
data better and act
• Blueprints, upon that
photographs, understanding
seismographs, … • Develop and assess
hypotheses (visual
exploration) Find
patterns and discover
errors in data

Classification of Visualization 1/
5 Types of Data Visualization Categories
Temporal
• 2 conditions: that they are linear, and are one-dimensional.
• Temporal visualizations normally feature lines that either stand alone or
overlap with each other, with a start and finish time.
• Easy to read graphs
Hierarchical
• those that order groups within larger groups. Hierarchical visualizations
are best suited if you’re looking to display clusters of information,
especially if they flow from a single origin point.
• more complex and difficult to read,

Network
• Datasets connect deeply with other datasets. Network data visualizations show how
they relate to one another within a network. In other words, demonstrating
relationships between datasets without wordy explanations.
Multidimensional
• there are always 2 or more variables in the mix to create a 3D data visualization.
• Because of the many concurrent layers and datasets, these types of visualizations tend
to be the most vibrant or eye-catching visuals. Another plus? These visuals can break
down a ton of data down to key takeaways.
Geospatial
• relate to real life physical locations, overlaying familiar maps with different data points.
• These types of data visualizations are commonly used to display sales or acquisitions
over time, and can be most recognizable for their use in political campaigns or to
display market penetration in multinational corporations.

Multidimen
Temporal Hierarchical Network Geospatial
sional
Scatter Tree Matrix

plots charts
Box plots Flow map
diagrams
Polar area Ring Node-link Density

Pie charts
diagrams charts diagrams map
Time series Sunburst Word Venn Cartogra

sequences diagrams clouds diagrams m
Alluvial Stacked
Timelines
diagrams bar graphs Heat map
Line
Histograms
graphs
https://www.klipfolio.com/resources/articles/what-is-data-visualization
Sage 7 - Deployment &
Iterative Lifecycle
Standard Methodology for Analytical Models (SMAM)
Operationalization –
Implementing the model as a deployable software solution

Deployment Phase
1. Solution Productionizing & Monitoring Setup

• Research language may or may not be possible to use in productionizing
• If Research and productionizing language is different; porting the algorithm;
finding related libraries & writing custom code; writing wrapper APIs
• If both are same; how to make models more scalable & achieve required
efficiency;
• Devise mechanism to continuously monitor the performance of model setup
2. Solution Deployment
• Hosting solution in company’s data centers or on cloud based on company’s
policies , infrastructure and cost
KPI Check
• Validating that target KPIs are met

<Transportation/ Logistics><Optimization Algorithms>
Problem Statement
• ABC Organization allows employees to request cab service for scheduled time slots,
having well-defined drop/pick up locations
• Services team manually creates routes for the given requests, which are often sub-
optimal
Solution Approach
• Used Large Neighborhood Search (LNS) – AI Search Metaheuristic
• Constraints built into LNS as Rules
Solution Benefits
• Overall Cost Optimization (Fuel, Security) and Travel Time Optimization
• No tedious manual planning required; more time window for user requests
Total No. of No. of Manual No. of proposed
Time Date Savings Vehicles used in manual routes Vehicles used in optimized routes
Customers routes routes
7:00 PM 1/19/2018 56% 28 12 7 1 Amaze- D, 2 Dzire D, 3 Etios D,1 Indica 6 Amaze D 4 seater, 1 Tavera D 9 Seater
D,1 Innova D, 4 Tempo Traveller
38
Project Example of Data Science
- Diagnostic Analytics
FSO analytics example –
Business Objective fro FSO Department: Target for 5 top clients in India,
Europe, South Africa and Costa Rica Markets
• FTR (Frist Time Right) Improvement by 2%
• Improve incoming WO Quality by 5%

References
• https://www.bouvet.no/bouvet-deler/roles-in-a-data-science-
project
• https://www.altexsoft.com/blog/datascience/how-to-structure
-data-science-team-key-models-and-roles/
• https://www.quora.com/What-is-the-life-cycle-of-a-data-scie
nce-project
• https://towardsdatascience.com/5-steps-of-a-data-science-p
roject-lifecycle-26c50372b492
• https://www.dezyre.com/article/life-cycle-of-a-data-science-p
roject/270
• https://www.slideshare.net/priyansakthi/methods-of-data-coll
ection-16037781
• https://www.questionpro.com/blog/qualitative-data/
• https://surfstat.anu.edu.au/surfstat-home/1-1-1.html

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Data Science Process

Data Science methodology

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

• Split correctly the data

1. Data Model Development & experiment framework setup

2. Data Model Evaluation & KPI Checks

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

• What is the main objective? What are we trying to predict?

“If you can’t measure it you can’t improve it”.

If you want to control something it should be observable, and in order to

• Regression problems use certain evaluation metrics such as mean squared

This is a simple kind of cross validation technique, also

K-fold cross validation significantly reduces bias as

• Helps in knowing how the machine learning model would generalize to an

• Helps in estimating how accurate the predictions will be in practice.

• There are different types of Cross-Validation techniques but the overall

Stratified K-Fold Cross validation

For such problems, a slight variation in the K Fold cross validation

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

This method can be very computationally expensive, as the number of trained

Above explained validation techniques are also referred to as Non-exhaustive cross

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Predictive modeling can be used to identify customers that will respond to a

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Classification Algorithms vs Clustering Algorithms

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Null Model Bayes rate model

Null Model (Single Variable Models) for Bi-variate regression model -

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Identifying common model problems

Bias - Systematic Error

Testing On Hold Out Data

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

What does Regularization achieve?

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

5 Types of Data Visualization Categories

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Scatter Tree Matrix

Polar area Ring Node-link Density

Time series Sunburst Word Venn Cartogra

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

1. Solution Productionizing & Monitoring Setup

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

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