Part 4: Advanced Analytics and Machine Learning
Classical Supervised Learning
Beyond logistic regression, advanced analytics and ML methods encompass Naive Bayes, KNN, SVM, tree-based models, ensemble methods (Random Forest), specialized transformations like WoE/IV, and Market Basket Analysis. They broaden the data-driven toolkit for classification, segmentation, and association rule discovery.
SUPERVISED LEARNING
High-level algorithms such as Naive Bayes, K-Nearest Neighbors, and Support Vector Machines expand basic classification beyond logistic regression. They use probability, proximity, or optimal margin principles to address diverse data patterns, offering flexible approaches to label prediction while requiring careful feature scaling and parameter tuning.
NAIVE BAYES CLASSIFICATION
Learning Objectives
Apply Bayes’ theorem for categorical/continuous features (GaussianNB, MultinomialNB)
Understand conditional independence assumptions and Laplace smoothing
Evaluate with confusion matrix, ROC, precision/recall
Indicative Content
Bayes Theorem
Posterior ∝ likelihood × prior
Naive Assumption
Feature independence
Implementation
scikit-learn
NB variants, confusion matrix, AUC
K-NEAREST NEIGHBOURS (KNN) CLASSIFICATION
Learning Objectives
Classify based on distance to labeled neighbors
Pick K using cross-validation or heuristics
Scale data to avoid magnitude bias
Indicative Content
Distance Metrics
Euclidean, Manhattan
Voting
Majority or distance-weighted
Implementation
KNeighborsClassifier
, checking performance metrics
SUPPORT VECTOR MACHINES (SVM)
Learning Objectives
Find optimal margin hyperplane for linear or kernel-based separation
Adjust parameters (C, gamma) for best performance
Measure success with confusion matrix, ROC, AUC
Indicative Content
Margin Maximization
Support vectors, slack variables
Kernels
Linear, RBF, polynomial
Implementation
sklearn.svm.SVC
, tuning (C, gamma)
TOOLS & METHODOLOGIES (CLASSICAL SUPERVISED LEARNING)
Python
scikit-learn
for Naive Bayes, KNN, SVM
Evaluation
Confusion matrix, ROC/AUC, precision/recall
Workflow
Data prep → model training (with feature scaling) → performance checks (metrics, hyperparameter tuning)