Data that come in the form of numerical values can vary enormously in range. If we operated a second hand auto business we might record the mileage of a vehicle and the number of services it has had. The recorded mileage might range from 2,000 to 300,000 miles, whereas the…
Glossary
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Recommender systems have been made famous by Amazon – “Customers who bought this also bought that …”. Organizations in retail and related businesses who are not using a recommender system are behind the curve. The fact that fifty or so recommender systems are available shows how widespread is their use.…
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Sensitivity and Specificity Imagine your business is about to launch a new product. In anticipation of this, the marketing department works with a team of business analysts to identify which customers might be good candidates for a promotion. A model is built, and it identifies relevant prospects based on various…
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It sounds fairly impressive, but is actually quite simple. The quadratic loss function gives a measure of how accurate a predictive model is. It works by taking the difference between the predicted probability and the actual value – so it is used on classification schemes which produce probabilities (Naive Bayes…