DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

MASTER OF BUSINESS ADMINISTRATION

SEMESTER 3

DADS303
INTRODUCTION TO MACHINE LEARNING

Unit 1 : Introduction to Machine Learning 1

DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

Unit 1
Introduction to Machine Learning
Table of Contents

SL Topic Fig No / Table SAQ / Page No

No / Graph Activity

1 Introduction - -
3-4
1.1 Learning Objectives - -

2 Definitions and Examples - 1

5-6

3 How Machine Learning Works and its 1, 2 ,3 2

7 - 11
relevance to businesses

4 Type(s) of Machine Learning Model - 3 12 - 14

5 Terminal Questions - - 15

6 Answers - - 15 - 17

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

1. INTRODUCTION
AI (i.e., Artificial Intelligence) has beaten the excitement of recent technologies like Quantum
computing, Cybersecurity, the Internet of Things, and blockchain. AI is becoming popular
daily because of the availability of resources to the common people. Also, the developers are
using AI to build various Machine Learning models. The demand for Data Science
professionals is increasing due to the vast application of machine learning concepts to
various industry domains.

ML, i.e., Machine Learning, is considered the sub-area of AI, i.e., Artificial Intelligence.
Machine learning aims to know about the structure of collected data and represent that data
through various models which can be easily analyzed and applied by people to get required
outcomes.

Although this field differs from traditional computing due to its advanced features, one can
train the data to receive the output within a given range using machine learning algorithms.
Compared to traditional machine learning algorithms (designed for problem-solving), these
algorithms would use various statistical techniques while analyzing. In addition to the above,
machine learning algorithms are also used to build models, which can be used for better
decision-making.

Some common applications of machine learning include facial recognition technology, which
is used in many devices as a biometric measure and allows various social media platforms to
tag and share photos or pictures, and optical character recognition, i.e., OCR, which translates
typed images into machine-encoded text. The self-driving car is yet another recent example
of machine learning.

Also, Machine learning is an uninterrupted growing area. Due to this, there are a few
considerations that we need to keep in our mind while we are working with machine
learning techniques or doing the analysis of the influence of machine learning developments.

In this unit, we will discuss various merits and demerits of machine learning. In addition, we
also discuss the role of machine learning in various businesses. We also explore the types of
machine learning techniques.

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

1.1 Learning Objectives

After studying this unit, you should be able to:

❖ Describe Machine Learning and various examples

❖ Discuss the relevance of machine learning in various businesses
❖ Explain the various types of Machine Learning techniques

So, let us start with an Introduction to Machine Learning and its usage.

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

2. DEFINITION AND EXAMPLES

In 1959, Arthur Samuel Introduced the term Machine Learning. He says, “It is the study of
algorithms which allows the computer machines to learn without explicit programming.”
One more definition Now, the second, more recent, comes from Professor Tom Mitchell from
Carnegie Mellon University. The professor talks about an experience in a computer from
performing a task with an associated performance measurement. The machine can learn
with its performance in a task and improve its performance.

Consider a few examples of machine learning being used in one’s daily life. So, if you have
noticed, Google can mark certain emails as spam. Spam filtering is one of the many cases
where machine learning has been extremely helpful in achieving really good results. And not
just Gmail, any popular email service provider you use nowadays can mark emails as spam
or not with a reasonable degree of accuracy. And if you have wondered how popular e-
commerce websites can come up with surprisingly good recommendations for products you
wish to buy. Again, this is done by some very clever application of machine learning
algorithms in the backend. And Machine learning algorithms can now classify handwritten
digits with nearly 100% accuracy. Additionally, if you want to know about ABS on your cars,
autopilot on Tesla cars, or self-driving cars from Google, the list is very big when it comes to
the application of machine learning. Not to get into the details of every application, machine
learning has made its presence in one way or another in one’s daily life.

This field is not a new one by any means. Over the last few decades, machine learning has
combined ideas and methodologies from various fields like probability, statistics, computer
sciences, computational biology, and much more. Probability, Statistics, and computer
science are the backbone of modern machine learning theory. It also borrows ideas from
Biology, Genetics, Clinical trials, and many other fields of social sciences.

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

Self-Assessment Questions - 1

1. Who coined the term Machine Learning?

a) Arthur Samuel
b) Arthur Mike
c) Samuel Arthur
d) None
2. Which of the following belongs to the working of Machine Learning?
a) Feed the Data.
b) Tag the Data.
c) Test the Model
d) All the Above
3. Which of the following doesn’t belong to the need of Machine Learning?
a) Machine Learning is used for Analysis.
b) We can use it for representing data by using visualization concepts.
c) No Data sets are required.
d) All of the above

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

3. HOW MACHINE LEARNING WORKS AND ITS RELEVANCE TO

BUSINESSES

The advent of modern computing power has helped in the spurting machine learning.
Anyone with a credit card can spawn up a cluster from one of the many web services
available, ranging from basic to advanced specifications. This enterprise’s scale hardware is
available to our consumers in a fraction of a minute. Additionally, good results on problems
considered difficult to solve historically have given machine learning much popularity in the
press. And most importantly, everybody sounds to be talking about it these days.

So, where and how does one learn machine learning? The starting point one always advises
is a question. A question with a specific business context in mind. Why is image recognition
important? It’s not because it’s cool to do. It is because image recognition helps solve a
business problem. Why do you think predicting whether a customer will default on credit
card payment is useful or not from a business perspective?

No. That’s the crux of starting with machine learning. Once you have a question, the relevant
data needs to be gathered. Historical data helps the machine learn from it. Once the machine
learns from its historical data, it needs additional data to determine how well it has learned.
Think about a semester-long course in any subject, say probability, or for that matter, the
course that we are currently learning. There is classroom material that helps the students
learn the concepts, along with some real-life examples.

Once classroom lectures are done, students get evaluated based on an examination at the
end of the course. What is important is that the questions in the final exam can come from
something other than the material that you have studied. That’s the same scenario here. So,
what does data look like? Raw Data might come in all sorts of different formats.

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

Figure.1: Sample Email (Not Spam)

Here is an example from fig.1, which represents an email that is probably not spam. This is
data for one email. As you can see, this is a bunch of text along with sender and receiver
information.

Reading through the text, this is probably not spam. This raw data contains useful
information about whether the email is spam. Our machine learning algorithm must do a
good job of extracting the key information from this unstructured raw data.

Figure.2: Sample Email (Spam)

Here is an illustration from fig.2 of an email that unmistakably screams spam. How come this
is spam? There is some helpful information concerning the email's validity in the sender and
email body. The dilemma that arises now is how to teach a machine to extract knowledge
from unstructured data that will aid problem-solving and learning.

Therefore, feature engineering is here as a saviour. Feature engineering is the process of

turning raw data into meaningful, machine-readable information features. You must create

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

features from raw data. Remember that for the exploratory study, we calculated the average
monthly bill for each customer. That is a type of feature engineering as well. For feature
engineering, we are not restricted to averaging. The only restriction on the number of
features is your ingenuity and imagination. The way you execute feature engineering on a
dataset greatly affects the outcomes. Hence, moving from what appears to be unstructured
data to something more organized, neat, and structured is where feature engineering starts.

Consider, for example, in fig.3, the raw text of emails that can be represented in a structured
form.

Figure.3: Raw Email texts in tabular form

Each row of the data contains details about an email, and each column has details about a
feature. The data is organized in a rectangular style. Here, we use three emails to
demonstrate some basic feature engineering. Therefore, the first characteristic we may build
is whether the sender is on the recipient's contact list. A Boolean variable, this feature is also
designated as x1. Whether the sender is included in the contact list can be either true or false.
The second function keeps track of the email's special character count and is denoted by x2.
The column Spam, which is of the type Boolean and indicates whether the email is spam, is
the last one on the list. The task is to predict this variable using a machine-learning method.
This variable is hence known as a response. The phrases outcome and dependent variable
are also frequently used.

Other names for features include independent variables, explanatory variables, and the like.
Think of any interesting characteristics one could create from the email's raw dataset as an
exercise, and then see what might be useful for feature engineering.

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

Applications and uses of machine learning are merely limitless, especially when we highly
promote using smartphones in our day-to-day activities. At the present time the smart
phones are highly tied to various machine-learning processes. Therefore, using machine
learning (through various mobile-based applications) in doing business is also becoming a
renowned practice nowadays.

Businesses using Machine Learning are gaining various benefits like improvement in their
working processes, atomization of various day-to-day activities, etc. For example, Uber
Technologies Inc. uses various machine learning algorithms for optimizing the pick and drop
time for their customers, Spotify (an audio streaming and media service) uses machine
learning to offer the concept of personalized marketing, Dell company delivers laptops, etc,
uses various algorithms in getting employees and customers feedback and improve their
practices based upon that feedback.

In addition to the above, there are some more business areas where machine learning can
assist our business in numerous ways. While using machine learning for our business
benefits, we need to define a strategy and follow the steps as per the policy. So, in
continuation to above, below we are going to define some areas where machine learning can
be used with some glowing ideas.

• Monitoring of Social Media Contents

• Various Customer Care Services
• Area of Image Processing
• Virtually Assistance in some specific areas
• Recommendations for Quality Product
• Trading and Investment in Stock Market
• Clinical Decisions Support Systems
• Reducing Data Repetition
• Increasing Cyber Security

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

Self-Assessment Questions - 2
4. In which can we use Machine Learning Model(s)?
a) Social Media
b) Quality Check
c) Virtual Assistance
d) All the Above
5. Machine Learning model can be used to reduce medical expenses?
a) True
b) False
6. Which of the following are the key terms used in Machine Learning?
a) Trend
b) Patterns
c) Data set
d) All the above

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

4. TYPE(S) OF MACHINE LEARNING MODEL

Tasks in machine learning are classified into various categories. This classification is based
on how one can learn by using the existing system or making predictions based on the
feedback data set one will use.

Thus, the following is a widely used classification of machine learning which are in use
globally, the list is as follows:

• Supervised Learning
• Unsupervised Learning &
• Reinforcement Learning

Supervised Learning

A response column in the data serves as a teacher for the algorithm in supervised learning.
It receives some instances to learn and then applies what it has learned to fresh, unexplored
data. Our example of classifying spam falls within a supervised learning challenge category.
The computer can determine if a group of emails is spam or not. It can attempt to learn how
to categorize a new email as spam or not spam based on that information and some inventive
feature engineering. The credit default issue is another illustration of a supervised learning
issue. Why? The system examines 29000 customers to determine whether each has missed
a payment. It can take what it has learned from this and attempt to apply it to new clients to
forecast whether they will default. Currently, there are two categories of challenges in
supervised learning. Depending on the sort of reaction, these groups are differentiated.

The response is categorical between 2 possible values, like the email spam example or the
credit default. Classification is the name given to such a supervised problem. However, if the
response is continuous or has a genuine value, one would normally need to answer a
regression problem if one wanted to estimate a student's final exam score based on
performance.

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

Unsupervised Learning

When a machine learns without an instructor, it is said to be performing unsupervised

learning. In other words, there is no clear response column in the data. The computer can
only analyze its features to hunt for a helpful pattern. The best use of unsupervised learning
is to identify groupings of data based on features. One can imagine a scenario requiring
classifying a group of clients in the credit card data based on the data provided in the bill
amounts and payments, which goes with the classification in an uninstructed mode.

Following are the use cases that use unsupervised learning techniques:

• Identifying different client groups around which to develop marketing or other

company tactics is known as customer segmentation.
• Genetics, for instance, uses DNA pattern clustering to study evolutionary biology.
• Recommender systems combine individuals with comparable viewing habits to suggest
related material.
• Fraud detection, for example, or the detection of faulty mechanical components (i.e.,
predictive maintenance).

Reinforcement Learning

This has behavioural psychology at its core. Each data point is presented to the computer
successively. It is rewarded for getting it right and penalized for getting it wrong. It
frequently makes many blunders when first starting, but it progressively learns. Imagine a
baby attempting to handle a steaming cup of coffee. It releases smoke and cannot tell
whether it is hot or cold. The poor thing is shocked when it touches for the first time and
probably sobs a lot. Touches it once more out of curiosity after waiting a little while longer.
receives another shock. Over time, it realizes that it could be a better idea to touch something
with smoke coming out of it. Reinforcement learning is a relatively new approach to various
machine learning issues. Given that they are typically defined as a series of judgments, logic
games are excellent candidates for reinforcement learning. Reinforcement learning has been
used in games like chess and poker rather successfully.

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

Self-Assessment Questions - 3

7. Which of the following belongs to the classification of Machine Learning?

a) Supervised Learning
b) Un-Supervised Learning
c) Both a) & b)
d) None of the Above
8. When machine learning model is strictly based upon a feedback system?
a) Reinforcement Learning
b) Supervised Learning
c) Both a) & b)
d) None of the Above

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

5. TERMINAL QUESTIONS

Short Answer Questions

Q. 1 Define Machine Learning?

Q.2 Elaborate on the working of Machine Learning?

Q.3 Explain the need for Machine Learning in Business.

Long Answer Questions

Q 1: Explain the detailed classification of Machine Learning Model(s).

Q 2: Illustrate the areas where one can use Machine Learning by using suitable example?

6. ANSWERS

Self-Assessment

1. A
2. D
3. C
4. C
5. A
6. D
7. A
8. D
9. D
10. D

Terminal Questions

Short Answer

Ans 1: Machine Learning is a computer-based program used to learn from our experiences.
Or it is a fancy labelling machine, i.e., here we teach the machines to label the things like
Maruti and Hyundai by showing them examples of cars. Finally, the machines will start these

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

labelling cars without any intervention- because they are already trained using appropriate
data sets.

Ans 2: To know about the process of how machine learning works, first, we need to specify
where we are going to use Machine Learning, i.e., we are going to use image recognition or
for doing text analysis. But a common thing which we need to do is we have to define “tag”.
For example, whenever we “tag” pictures of animals i.e., cow, dog, cat etc we always try to
mention them with their appropriate names; this process is also known as data labeling (i.e.,
an important step in Machine Learning). But when doing text analysis from machine
learning, we need to fill the model (machine learning) by using some text data and then tag
it.

So, in general, we can define the basic working process of the machine learning model as per
the below-mentioned steps:

1. Feed the data in Machine Learning Model (i.e., input data).

2. Tag the data as per the desired output. (i.e., while entering the feedback data, we
classify it as worst, neutral, average, and best).
3. Now, test our model and try to make the predictions.

[Refer Sec 1.2]

Ans 3: Thus, after studying various facts now, we can define the need for machine learning
as follows.

• Machine learning makes use of data sets for doing the analysis.
• It uses historical data sets for predictions or forecasting, which helps us do the analysis.
• Sometimes, we can also correlate this term with data mining.

This is a technology highly dependent upon data or data sets.

Long Answer(s)

Ans 1: Thus, the following is the widely used classification of machine learning which we are
going to use globally as follows:

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DADS303: Introduction to Machine Learning Manipal University Jaipur (MUJ)

• Supervised Learning
• Unsupervised Learning &
• Reinforcement Learning

[Refer to sec 1.4]

Ans 2: some areas where machine learning can be used with some glowing ideas.

• Monitoring of Social Media Contents

• Various Customer Care Services
• Area of Image Processing
• Virtually Assistance in some specific areas
• Recommendations of Quality Product
• Trading and Investment in Stock Market
• Clinical Decisions Support Systems
• Reducing Data Repetition
• Increasing Cyber Security

[Refer to sec 1.3]

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