Introduction to ML for analysts and product managers Unit 1: what is machine learning

1. Introduction to
Machine Learning
for Analysts and Product Managers
Machine Learning Bookcamp
Alexey Grigorev
Unit 1:
What is Machine Learning?

2. mlbookcamp.com

3. Plan
● What is Machine Learning
● Example: Car price prediction
● Supervised Machine Learning

4. Machine Learning
DATA ML PATTERNS
● ML: applied math + computer science
● “Learning”: ML discovers patterns in data

5. Imagine we have a car classifieds website
Pictures taken from olx.ua

6. I want to
sell my
car
Picture by John Torcasio from unsplash (source)

7. ��

8. ��

9. 🤔
��

10. 🤔
How can we help our user select the best price?
��

11. $1.1k
Price
$0.6k
$23k
What do we know about cars?

12. 1995
Year
1980
2016
$1.1k
Price
$0.6k
$23k
What do we know about cars?

13. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
$1.1k
Price
$0.6k
$23k
What do we know about cars?

14. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
What do we know about cars?

15. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
What do we know about cars?

16. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
Using this information, an expert can determine the price
👨‍🔧

17. DATA PATTERNS👨‍🔧

18. DATA ML PATTERNS
DATA PATTERNS
If an expert can, so can a model!
👨‍🔧

19. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
“Features”
what we know about cars
“Target”
what we want to predict

20. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
... ... ... ......🚗

21. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
... ... ... ......🚗
model
“Features” “Target”
train
Machine Learning

22. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
... ... ... ......🚗
“Features” “Target”
predict
$100k
Price
$600k
$13k
...
“Predictions”
Training a model: iteration 1

23. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
... ... ... ......🚗
“Features” “Target”
predict
$50k
Price
$10k
$18k
...
“Predictions”
Training a model: iteration 2

24. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
... ... ... ......🚗
“Features” “Target”
predict
$20k
Price
$5k
$25k
...
“Predictions”
Training a model: iteration 3

25. ...
Training a model:

26. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
... ... ... ......🚗
“Features” “Target”
predict
$1.5k
Price
$0.4k
$20k
...
“Predictions”
Training a model: iteration T

27. 1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
$1.1k
Price
$0.6k
$23k
...
...
...
...
... ... ... ......🚗
model
“Features” “Target”
train
Machine Learning

28. ��

29. ��
model
1995
GAZ
200.000
...
Year
Make
Mileage
...

30. ��
model
1995
GAZ
200.000
...
Year
Make
Mileage
...

31. ��
🥳

32. Features
Target
Model training
ML Model

33. ML Model
1995
Year
1980
2016
GAZ
Make
VAZ
BWM
200.000
Mileage
100.000
5.000
...
...
...
...
... ... ... ...
$1.1k
Price
$0.6k
$23k
...
Model training

34. Features PredictionsModel
Predictions

35. Model
1996
Year
1991
2018
Volvo
Make
GAZ
Audi
100.000
Mileage
50.000
2.000
...
...
...
...
... ... ... ...
$1.1k
Price
$0.6k
$23k
...
Predictions

36. Supervised Machine Learning
● Supervised = we have target information to learn from
● Two main categories: regression and classification
● Regression: predict a number
● Classification: predict a class/category

37. Supervised Machine Learning
$50kRegression:

38. Supervised Machine Learning
$50kRegression:
$1mRegression:
🏠

39. Supervised Machine Learning
carClassification:

40. Supervised Machine Learning
spamClassification:
carClassification:
✉

41. Classification
cat
dog
car
Multiclass:

42. Classification
spam
not spam
Binary:
cat
dog
car
Multiclass:
✉

43. Summary
● Machine learning uses data to find patterns
● If an expert can do something, we can automate it with ML
● Features are the descriptions of objects (cars, emails, etc)
● Target is the information we want to predict (price, spam/not spam, etc)
● Two main categories: regression (number) and classification (category)

44. mlbookcamp.com
● Learn Machine Learning by doing
projects
● http://bit.ly/mlbookcamp
● Get 40% off with code “grigorevpc”
Machine Learning
Bookcamp

45. Course page:
mlbookcamp.com/course/ml-pm
@Al_Grigoragrigorev
alexeygrigorev.com
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