Binary Classification

Using Neural Networks

AN IMPLEMENTATION IN PYTHON
 Introduction
•Introduction to Binary Classification and Neural Networks
•Overview of the Online Retail dataset
•Problem Statement
 Dataset Overview

Online Retail Dataset

•Extensive e-commerce transaction data
•Key Elements:
•InvoiceNo: Unique identifier for transactions
•StockCode: Unique product identification code
•Description: Product descriptions
•Quantity and UnitPrice: Transaction details
•InvoiceDate: Date and time of transactions
•Country: Customer's residence
 Neural Network Architecture
• Neural Network ArchitectureInput Layer: Number of input features
• Hidden Layer: Number of units, activation function (sigmoid)
• Output Layer: Binary classification (sigmoid)

# Neural Network Architecture

input_size = # Number of input features
hidden_size = # Number of units in the hidden layer
output_size = 1 # Binary classification

weights_input_hidden, bias_input_hidden, weights_hidden_output, bias_hidden_output =

initialize_parameters(input_size, hidden_size, output_size)
 Code Structure
Code Structure Overview
◦ Normalization:
X_normalized, mean, std = normalize_data(X)
◦ Initialization:
weights, bias = initialize_parameters(X_normalized_bias.shape[1]
◦ Forward and Backward Propagation:
a_input_hidden, a_hidden_output = forward_propagation(X_train, weights_input_hidden, bias_input_hidden,
weights_hidden_output, bias_hidden_output)
◦ Gradient Descent:
 Training the Neural Network
• Training ProcessNumber of Epochs: 1000
• Learning Rate: 0.01
• Batch Processing Approach

# Training the Neural Network

epochs = 1000
learning_rate = 0.01

for epoch in range(epochs):

a_input_hidden, a_hidden_output = forward_propagation(X_train, weights_input_hidden, bias_input_hidden, weights_hidden_output, bias_hidden_output)

cost = compute_cost(y_train.reshape(-1, 1), a_hidden_output)

dw_input_hidden, db_input_hidden, dw_hidden_output, db_hidden_output = backward_propagation(X_train, y_train.reshape(-1, 1), a_input_hidden, a_hidden_output,

weights_hidden_output)

weights_input_hidden, bias_input_hidden, weights_hidden_output, bias_hidden_output = gradient_descent(

weights_input_hidden, bias_input_hidden, weights_hidden_output, bias_hidden_output,
dw_input_hidden, db_input_hidden, dw_hidden_output, db_hidden_output, learning_rate
)
 Results
• Model EvaluationAccuracy: 0.85
• Confusion Matrix:

# Model Evaluation
accuracy = accuracy_score(y_test, y_pred_test)
conf_matrix = confusion_matrix(y_test, y_pred_test)

print(f'\nAccuracy: {accuracy}')
print('Confusion Matrix:')
print(conf_matrix)
 Results
• Model Evaluation
◦ Accuracy: 0.85
◦ Confusion Matrix:

# Model Evaluation
accuracy = accuracy_score(y_test, y_pred_test)
conf_matrix = confusion_matrix(y_test, y_pred_test)

print(f'\nAccuracy: {accuracy}')
print('Confusion Matrix:')
print(conf_matrix)
 Visualizations
•Visual Representations
◦ Original Data
◦ Neural Network Predictions

# Visualizations
plt.scatter(X_normalized[:, 1], y, label='Original data')
plt.plot(X_normalized[:, 1], a_hidden_output, color='red', label='Neural Network')
plt.xlabel('Normalized Quantity')
plt.ylabel('HighValue (1 for high, 0 for low)')
plt.legend()
plt.show()
 Challenges and Improvements
•Challenges and Improvements
◦ Challenges Faced During Implementation
◦ Suggestions for Improvements
◦ Modifications for Enhanced Performance
 Conclusion
•Conclusion
◦ Summary of Key Points
◦ Significance of Results
◦ Real-World Applications