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Predictive Analytics

Predictive analytics utilizes statistical techniques, machine learning, and data mining to analyze historical and current data for forecasting future events. It involves data collection, cleaning, modeling, and generating insights to guide decision-making across various industries such as finance, healthcare, and marketing. Key components include high-quality data, statistical models, and machine learning algorithms, while challenges encompass data quality, interpretability, and ethical considerations.

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0% found this document useful (0 votes)
46 views24 pages

Predictive Analytics

Predictive analytics utilizes statistical techniques, machine learning, and data mining to analyze historical and current data for forecasting future events. It involves data collection, cleaning, modeling, and generating insights to guide decision-making across various industries such as finance, healthcare, and marketing. Key components include high-quality data, statistical models, and machine learning algorithms, while challenges encompass data quality, interpretability, and ethical considerations.

Uploaded by

20235203067
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Predictive Analytics?

▪ Predictive analytics encompasses a variety of statistical techniques from data


mining, predictive modeling, and machine learning that analyze current and
historical facts (data) to make predictions about future or otherwise unknown
events.
▪ Predictive analytics is the process of using statistical techniques, machine
learning, data mining, and predictive modeling on historical and current data to
analyze patterns and make predictions about future or otherwise unknown events.

▪ Predictive analytics is the use of data, statistical algorithm, machine learning


techniques to identify the likelihood of future outcomes based on historical and
current data.

▪ Predictive analytics involves extracting patterns from historical and current data
to forecast future outcomes or trends. It answers the question, “What is likely to
happen?” by quantifying probabilities and identifying relationships in data.

▪ Historical data refers to recorded information about past events, circumstances,


or phenomena related to a specific subject.

How it works
▪ It uses statistical models and machine learning algorithms to analyze past data,
identify patterns, and make predictions.

Key objective
▪ It aims to predict the likelihood of outcomes and guide decision-making by
uncovering relationships between various factors based on past occurrences.
▪ The goal is to provide a best assessment of what will happen in the future.
▪ Enable proactive decision-making by providing actionable insights into future
probabilities, rather than just describing what has happened (descriptive analytics)
or why it happened (diagnostic analytics).
Key Components
• Data: The foundation of predictive analytics. This includes structured data (e.g.,
databases, spreadsheets) and unstructured data (e.g., text, images). High-quality,
relevant, and clean data is essential for accurate predictions.

• Statistical Models: Algorithms like regression, classification, and clustering are


used to identify relationships and patterns in data. These models form the basis
for predictions.

• Machine Learning: Advanced techniques, such as neural networks or ensemble


methods, enhance predictive power by handling complex, non-linear patterns in
large datasets.

• Domain Knowledge: Understanding the context of the problem (e.g., industry-


specific factors) ensures the right variables are selected and models are relevant.

• Validation and Testing: Predictions are tested against real outcomes to ensure
model accuracy and generalizability.
Core Techniques
• Regression Analysis: Used to predict numerical outcomes. For example, linear
regression can predict sales revenue based on advertising spend and historical
sales data.

o Example: Predicting a house’s price based on its size, location, and number
of bedrooms.

• Classification: Predicts categorical outcomes, such as whether an event will


occur (e.g., yes/no, true/false). Algorithms like logistic regression, decision trees,
or support vector machines are common.

o Example: Classifying whether a loan applicant is likely to default.

• Time-Series Forecasting: Analyzes data points collected over time to predict


future trends, such as stock prices or weather patterns. Techniques include
ARIMA, exponential smoothing, or LSTM (a type of neural network).

o Example: Forecasting monthly electricity demand for a utility company.

• Clustering: Groups similar data points to identify patterns, often used in customer
segmentation.

o Example: Grouping customers by purchasing behavior for targeted


marketing.

• Decision Trees and Ensemble Methods: Decision trees split data into branches
to make predictions, while ensemble methods like random forests or gradient
boosting combine multiple models for better accuracy.

o Example: Predicting equipment failure by analyzing sensor data with a


random forest model.

• Neural Networks and Deep Learning: These are used for complex datasets,
such as image recognition or natural language processing, where non-linear
relationships are prevalent.

o Example: Predicting customer sentiment from social media posts.


Applications Across Industries
• Finance:

o Credit Scoring: Predicting the likelihood of a borrower defaulting on a loan


using credit history and financial data.

o Fraud Detection: Identifying suspicious transactions by analyzing patterns


in spending behavior.

• Healthcare:

o Disease Prediction: Forecasting the likelihood of diseases like diabetes


based on patient data (e.g., age, weight, family history).

o Hospital Readmission: Predicting which patients are at risk of readmission


to optimize care plans.

• Marketing:

o Customer Churn Prediction: Identifying customers likely to stop using a


service to target retention efforts.

o Personalized Recommendations: Predicting what products a customer


might buy based on past purchases (e.g., Netflix or Amazon
recommendations).
• Operations:

o Supply Chain Optimization: Forecasting demand to manage inventory and


reduce waste.

o Predictive Maintenance: Anticipating equipment failures by analyzing


sensor data to schedule timely repairs.
• Retail:

o Sales Forecasting: Predicting future sales to optimize pricing and


promotions.

o Customer Segmentation: Grouping customers by behavior for targeted


campaigns.
• Human Resources:

o Employee Turnover Prediction: Identifying employees likely to leave based


on engagement and performance data.
o Talent Acquisition: Predicting candidate success based on resumes and
assessment scores.

Tools and Technologies


• Programming Languages:

o Python: Widely used due to libraries like scikit-learn, TensorFlow, and


pandas for data manipulation, modeling, and visualization.

o R: Popular for statistical analysis and visualization, with packages like caret
and randomForest.

• Platforms:
o SAS: Offers robust tools for predictive modeling and business intelligence.

o IBM SPSS: User-friendly for statistical analysis and predictive analytics.

o Microsoft Azure Machine Learning: Cloud-based platform for building and


deploying models.

o Google Cloud AI: Provides tools for predictive analytics with integration into
BigQuery and TensorFlow.

• Visualization Tools:

o Tableau: For visualizing predictive insights.

o Power BI: Integrates predictive models with interactive dashboards.

Challenges
• Data Quality: Inaccurate, incomplete, or biased data can lead to poor predictions.
For example, missing customer data can skew churn predictions.
• Overfitting: Models that are too complex may perform well on training data but fail
to generalize to new data.

• Interpretability: Complex models like neural networks can be “black boxes,”


making it hard to explain predictions to stakeholders.

• Scalability: Handling large datasets or real-time predictions requires significant


computational resources.

• Dynamic Environments: Changing conditions (e.g., market shifts) can render


models obsolete, requiring frequent updates.

Ethical Considerations
• Bias and Fairness: Models trained on biased data can disseminate unfair
outcomes, such as discriminatory loan approvals based on historical biases.

o Example: If a dataset underrepresents certain demographics, predictions


may be skewed against them.

• Privacy: Using sensitive data (e.g., health or financial records) raises concerns
about consent and data security.

• Transparency: Stakeholders need to understand how predictions are made,


especially in high-stakes areas like healthcare or criminal justice.

• Accountability: Organizations must ensure predictions don’t harm individuals or


groups and have mechanisms to address errors.

Getting Started with Predictive Analytics


• Learn the Basics: Study statistics, machine learning, and data manipulation.
Online courses (e.g., Coursera, edX) cover these topics.

• Choose a Tool: Start with Python or R for flexibility, or platforms like SAS for
enterprise use.

• Practice with Datasets: Use public datasets (e.g., Kaggle) to build and test
models.

• Focus on Business Value: Align projects with organizational goals to ensure


impact.

• Stay Updated: Follow advancements in AI and data science to leverage new tools
and techniques.
Data to insights to decisions / Process of Predictive
Analytics
The journey from data to insights to decisions follows a structured process that transforms
raw data into actionable outcomes supporting effective decision-making. The main stages
are:
1. Define the Problem or Objective: Begin with a clear understanding of the
business question or decision that needs to be addressed. This involves defining
specific goals, key performance indicators (KPIs), and what success looks like.
Clear objectives guide the entire analytics process.
2. Data Collection: Gather relevant data from various sources, such as internal
databases, customer feedback, transaction records, sensors, or external industry
data. The data must be aligned with the defined objectives.
3. Data Cleaning and Preparation: Cleanse the data to handle missing values,
errors, and inconsistencies. Prepare it for analysis through filtering, transformation,
and feature selection to ensure quality and reliability.
4. Data Analysis and Modeling: Apply analytical techniques, including descriptive
statistics, machine learning models, or predictive analytics, to uncover patterns,
correlations, or forecasts. Different models and methods may be tested to find the
best fit.
5. Generate Insights: Interpret the analysis results to extract meaningful insights that
answer the original question. Use data visualization and reporting to communicate
these findings clearly to stakeholders.
6. Make Data-Driven Decisions: Use the insights to inform business strategies or
operational decisions. Actions are based on evidence rather than intuition or
assumptions, improving accuracy and reducing bias.
7. Implement and Monitor: Put decisions into practice, monitor outcomes, and feed
new data back into the process for continuous learning and improvement.
This ierave cycle ensures organizaons move sysemacally rom raw daa hrough analysis o
insighs, enabling inormed and effecve decision-making ha drives business success.

1. Define Clear Objecves


Start by precisely defining the business problem or decision question. Set specific,
measurable goals (Key Performance Indicators or KPIs) aligned with the
organization’s strategic priorities. These objectives guide what data to collect and
how to measure success.

Example: A retail company sets an objective to reduce customer churn by 10% in


the next quarter.

2. Collec Relevan Daa


Gather data from internal and external sources that directly affect the objectives.
Data could include sales transactions, customer feedback, sensor data, market
reports, etc. Data quality and governance are critical here.

Example: The retailer collects purchase history, customer service interactions, and
loyalty program data.

3. Daa Cleaning and Preparaon


Clean data by handling missing values, correcting errors, and ensuring
consistency. Transform and select relevant features that will aid effective analysis.
Example: Missing customer contact information is filled or removed; product
categories are standardized.
4. Daa Analysis and Modeling
Use appropriate analytical and machine learning techniques to explore the data,
identify patterns, and build predictive models if applicable. Validation ensures
model accuracy and robustness.

Example: The retailer uses classification models (e.g., random forest) to predict
which customers are likely to churn.

5. Generae Insighs
Interpret analytical results to understand underlying causes or trends.
Visualizations and reports communicate insights clearly to stakeholders.

Example: Analysis reveals that customers who reduce purchase frequency and
contact customer service more than twice a month have a high churn risk.

6. Make Daa-Driven Decisions


Use the insights to inform strategic or operational decisions. Implement actions
designed to achieve the defined objectives.
Example: Develop targeted retention campaigns offering personalized discounts
to high-risk customers.

7. Implemen and Monior Resuls


Roll out decisions and continuously monitor outcomes against KPIs. Feed new
data back to refine models and strategies iteratively, enabling continuous
improvement.
Example: Track churn rates post-campaign and update predictive models with new
customer behaviors
Process of Predictive Analytics
• Define the Problem: Identify the business question or goal (e.g., “Which
customers are likely to churn?”).

• Data Collection: Gather relevant data from internal (e.g., CRM systems) and
external sources (e.g., market trends).

• Data Preparation: Clean data by handling missing values, outliers, and


inconsistencies. Feature engineering creates new variables to improve model
performance.

• Model Selection: Choose appropriate algorithms based on the problem type (e.g.,
regression for continuous outcomes, classification for categorical).

• Training and Testing: Split data into training and testing sets to build and validate
the model. Common splits are 70/30 or 80/20.

• Evaluation: Use metrics like accuracy, precision, recall, RMSE (Root Mean
Square Error), or AUC (Area Under the Curve) to assess model performance.

• Deployment: Integrate the model into business processes (e.g., embedding churn
predictions into a CRM system).

• Monitoring and Updating: Continuously monitor model performance and retrain


with new data to maintain accuracy.
Machine learning for predictive data analytics
Machine learning plays a foundational role in predictive data analytics by utilizing
algorithms and statistical techniques to analyze historical data and forecast future
outcomes. This approach is widely used across various industries to support decision-
making, identify trends, and drive business value.

How Machine Learning Enables Predictive Data Analytics


• Data Collection & Preparation: The process begins with gathering relevant, high-
quality data, often from multiple sources. This data is then cleansed and
preprocessed to handle missing values, outliers, and inconsistencies, ensuring
models are built on accurate information.

• Model Development: Data scientists use machine learning algorithms to develop


predictive models tailored to the problem at hand. Commonly used algorithms
include decision trees, regression models (linear and logistic), random forests,
neural networks, and ensemble models such as Gradient Boosted Machines
(GBM) and XGBoost.

• Types of Predictions:

• Classification: Predicts discrete outcomes, such as whether an email is


spam or not (using algorithms like decision trees, SVM, or random forests).

• Regression: Predicts continuous values, such as sales forecasts or risk


scores (using linear regression or time series analysis like ARIMA or
Prophet).

• Validation & Deployment: Models are validated for accuracy using techniques
like cross-validation. Once reliable, they are deployed into business systems to
deliver predictions in real time or over specific intervals.

• Continuous Learning: Predictive models improve over time as they ingest new
data, continuously optimizing for higher accuracy and adaptability in changing
environments
Common Machine Learning Algorithms in Predictive Analytics

Algorithm/Technique Purpose Example Use Case

Decision Trees Classification/Regression Churn prediction

Random Forest Ensemble Fraud detection


Classification/Regression

Logistic Regression Classification Credit risk assessment

Neural Networks Nonlinear/pattern recognition Image recognition, demand


forecasting

Time Series Trend/sequence forecasting Sales or stock price


(ARIMA) prediction

XGBoost/GBM Advanced ensemble models Customer segmentation,


medical diagnosis
Classification vs. Regression Models

Aspect Classification Regression

Goal Predict discrete/categorical Predict continuous/numerical values


outcomes

Examples Is this email spam or not? What will next month’s sales amount
be?

Typical Decision trees, random Linear regression, ridge/lasso


Algorithms forests, logistic regression, regression, decision trees, random
support vector machines forests, neural networks, ARIMA (for
(SVM), neural networks time series)

Outcome Finite set of classes/labels Any value within a range (e.g., 0–


Type (e.g., Yes/No, categories) 100, -∞ to ∞)

Performance Accuracy, precision, recall, Mean squared error (MSE), root


Metrics F1-score, ROC-AUC mean squared error (RMSE), mean
absolute error (MAE), R-squared
(R²)

Use Cases Fraud detection, customer Sales forecasting, price prediction,


segmentation, disease demand forecasting
diagnosis
ill-Posed Problems in Machine Learning
An ill-posed problem, in he conex o ML, reers o a problem ha violaes one or more o he
condions or being well-posed, as defined by Jacques Hadamard:

1. A soluon exiss.
2. The soluon is unique.
3. The soluon is sable (small changes in inpu lead o small changes in oupu).
In ML, ill-posed problems ofen arise when he daa or model seup leads o ambiguiy, non-
uniqueness, or insabiliy in soluons, making i hard o achieve reliable predicons.

Relevance o ML (Cancer Deecon Example)

In cancer deecon rom medical imaging:

• Exisence: A soluon may exis, bu he complexiy o medical images (e.g., suble umor
paerns) makes i hard o guaranee he model will find i.

• Uniqueness: Mulple models or parameer setngs migh produce similar resuls, bu i’s
unclear which is opmal. For insance, differen CNN archiecures may deec umors
wih comparable accuracy bu ocus on differen image eaures.

• Sabiliy: Small changes in inpu images (e.g., noise, variaons in imaging equipmen, or
paen demographics) can lead o drascally differen predicons i he model isn’
robus.

Causes of Ill-Posed Problems in ML

1. Insufficient Data:
o Small or non-representative datasets fail to capture the full variability of the
problem. For instance, a dataset of 1,000 mammograms may not include enough
cases of rare tumor types, leading to incomplete learning.
o Lack of diversity (e.g., images from a single demographic) can cause the model to
miss generalizable patterns.
2. High Dimensionality:
o ML problems often involve high-dimensional data (e.g., medical images with
millions of pixels). This increases the risk of overfitting or finding multiple
solutions that fit the data equally well.
o In cancer detection, the high number of features (pixels) compared to the number
of samples can make the problem underdetermined.
3. Noisy or Ambiguous Data:
o Real-world data often contains noise (e.g., artifacts in medical images from
equipment) or ambiguous patterns (e.g., benign and malignant tissues with similar
appearances), making it hard to define a unique solution.
o For example, subtle differences between cancerous and non-cancerous regions
may be indistinguishable without additional context.
4. Ill-Defined Problem Formulation:
o Poorly defined objectives or labels can exacerbate ill-posedness. For instance, if
"cancer" labels in a dataset are inconsistent due to human error, the model may
learn incorrect patterns.
o In regression tasks (e.g., predicting tumor size), the relationship between inputs
and outputs may be inherently ambiguous due to biological variability.
5. Non-Linear and Complex Relationships:
o Many ML problems involve complex, non-linear relationships that are difficult to
model accurately. In cancer detection, the relationship between pixel patterns and
malignancy is highly non-linear, increasing the risk of instability.

Overfitng in Machine Learning


Overfitng is a crical challenge in machine learning (ML) where a model learns he raining daa
oo well, including is noise and ouliers, resulng in poor perormance on new, unseen daa. This
leads o a model ha is overly complex and ails o generalize o real-world scenarios

Relevance o ML (Cancer Deecon Example)

In cancer deecon:

• A CNN migh memorize specific pixel paerns in he raining mammograms, including
irrelevan deails like imaging aracs or paen-specific noise.

• When esed on new images (e.g., rom a differen hospial or machine), he model may
ail o correcly classiy umors, leading o low sensiviy or specificiy.

Causes of Overfitng
1. Complex Models:

o Models wih oo many parameers (e.g., deep neural neworks wih millions o
weighs) can fi he raining daa excessively, capuring noise insead o general
paerns.

o Example: A CNN wih 50 layers migh overfi a small daase o 1,000


mammograms by learning irrelevan pixel paerns.

2. Insufficien Daa:

o Small or non-diverse daases limi he model’s abiliy o learn generalizable


paerns.

o Example: I a cancer deecon daase has ew malignan cases or is sourced rom
one hospial, he model may overfi o specific imaging condions.

3. Noisy Daa:

o Real-world daa ofen conains noise (e.g., imaging aracs in medical scans or
mislabeled daa), which he model may misakenly rea as meaningul.

o Example: A CNN migh learn o associae scanner-specific noise wih cancer,


leading o alse posives on cleaner images.

4. Lack of Regularizaon:

o Wihou consrains, models can become overly flexible, fitng he raining daa
oo closely.

o Example: A CNN wihou dropou or weigh penales may priorize irrelevan


eaures in mammograms.

5. Imbalanced Daa:

o I he daase is skewed (e.g., 90% benign and 10% malignan cases), he model
may overfi o he majoriy class, neglecng minoriy paerns.

o Example: A model migh achieve high accuracy by predicng mos cases as benign,
missing crical malignan cases.

6. Overraining:

o Training a model or oo many epochs can cause i o memorize he raining daa
raher han learn general paerns.
o Example: Afer 50 epochs, a CNN migh sar fitng noise in mammograms,
reducing is abiliy o generalize.

Implicaons of Overfitng
• Poor Generalizaon: The model perorms well on raining daa bu poorly on new daa,
liming is praccal uliy.

o Example: A cancer deecon model wih 95% raining accuracy bu 70% es
accuracy ails o reliably deec umors in clinical setngs.

• Reduced Trus: In applicaons like healhcare, overfitng can lead o alse posives or
negaves, eroding confidence in he model.

• Resource Wase: Overfied models require more compuaonal resources and me o
rain, wih diminishing reurns on perormance.

Soluons o Migae Overfitng

1. Regularizaon:

o Adds consrains o reduce model complexiy and preven overfitng o noise.

o Techniques:

▪ L1/L2 Regularizaon: Penalizes large weighs in he model (e.g., adding a


erm o he loss uncon o discourage overly complex CNNs).

▪ Dropou: Randomly deacvaes a racon o neurons during raining,


orcing he model o learn robus eaures.

o Example: Applying dropou (e.g., 50% neuron dropou rae) o a CNN or cancer
deecon prevens reliance on specific pixel paerns.

2. Daa Augmenaon:

o Increases daase size and diversiy by generang synhec variaons o he


raining daa.

o Example: For mammograms, augmenaons like roaon, flipping, zooming, or


adjusng brighness help he model generalize o varied imaging condions.

3. More Daa:

o Collecng larger, more diverse daases ensures he model learns represenave
paerns.
o Example: Including mammograms rom mulple hospials, demographics, and
imaging devices reduces he risk o overfitng o specific condions.

4. Cross-Validaon:

o Splis daa ino k-olds (e.g., 5-old cross-validaon) o evaluae model


perormance on mulple subses, ensuring robusness.

o Example: A cancer deecon model esed across five olds o diverse daa is less
likely o overfi han one rained on a single spli.

5. Early Sopping:

o Moniors validaon loss during raining and sops when i no longer improves,
prevenng he model rom memorizing raining daa.

o Example: Halng raining afer 10 epochs i validaon loss increases while raining
loss connues o drop.

6. Simpler Models:

o Using less complex archiecures reduces he risk o overfitng, especially wih
small daases.

o Example: Swiching rom a 50-layer CNN o a 10-layer CNN or using ranser


learning wih a pre-rained model like ResNe.

7. Transfer Learning:

o Fine-unes pre-rained models (e.g., rained on ImageNe) on specific asks,


leveraging general eaures o reduce overfitng.

o Example: Fine-uning a pre-rained ResNe on a small mammogram daase


improves generalizaon compared o raining rom scrach.

8. Daa Cleaning:

o Removing or correcng noisy or mislabeled daa improves he qualiy o he


raining se.

o Example: Veriying labels in a cancer daase o ensure malignan/benign cases are


accuraely annoaed.

9. Balanced Daases:

o Addressing class imbalance (e.g., using oversampling, undersampling, or synhec


daa generaon like SMOTE) ensures he model learns paerns rom all classes.
o Example: Generang synhec malignan mammograms o balance a daase wih
ew posive cases.
Sep-by-Sep Model wih Finance Example
1. Define Clear Objectives
Clearly specify the financial problem or goal.
Example: A bank aims to reduce loan default rates by 20% within the next year.
2. Collect Relevant Data
Gather data related to customers’ financial histories, credit scores, transaction
behaviors, and demographic information.
Example: Collect loan application data, repayment histories, credit bureau scores,
income details, and spending patterns.
3. Data Cleaning and Preparation
Handle missing or inconsistent entries, remove duplicates, and prepare features
relevant for modeling.
Example: Fill missing income entries, standardize loan types and payment
frequencies, and encode categorical variables such as employment status.
4. Data Analysis and Modeling
Develop machine learning models to predict the likelihood of loan default based
on historical patterns.
Example: Use logistic regression, random forests, or gradient boosting methods
to classify loan applicants by default risk.
5. Generate Insights
Analyze model outcomes to understand key predictors of default.
Example: Discover that applicants with unstable employment or high debt-to-
income ratios have significantly higher default probabilities.
6. Make Data-Driven Decisions
Use insights to adjust lending policies or design risk-based pricing models.
Example: Implement stricter credit criteria for high-risk profiles or offer tailored
loan terms with higher interest rates to mitigate risk.
7. Implement and Monitor Results
Track default rates post-implementation and continuously update models with new
loan performance data.
Example: Monitor monthly default trends and refine predictive models to adapt to
changing economic conditions.
Here is a deailed sep-by-sep daa-o-insighs-o-decisions model ocused on disease
predicon in healhcare using machine learning, aligned wih your reques or a disease-relaed
example:

Sep-by-Sep Model or Disease Predicon

1. Define Clear Objecves


Se a specific healhcare goal.
Example: Predic he likelihood o paens developing diabees wihin he nex year o
enable early inervenon.

2. Collec Relevan Daa


Gaher comprehensive paen daa including medical hisory, sympoms, lab es resuls,
demographic inormaon, and liesyle acors.
Example: Elecronic Healh Records (EHR), blood glucose levels, BMI, age, amily hisory
o diabees, physical acviy daa.

3. Daa Cleaning and Preparaon


Handle missing values, remove erroneous daa, encode caegorical variables, and
normalize eaures or consisency.
Example: Fill missing lab values using sascal mehods; encode gender and race
caegories numerically.

4. Feaure Selecon and Engineering


Ideny and ransorm he mos relevan eaures ha correlae srongly wih he disease
oucome.
Example: Creae new eaures such as average blood sugar over me or change in BMI.

5. Daa Splitng
Spli he daase ino raining and esng subses o validae model perormance
accuraely.

6. Model Selecon and Training


Choose appropriae machine learning algorihms (e.g., logisc regression, random ores,
suppor vecor machines) and rain hem on he prepared daase.
Example: Train a random ores classifier o predic diabees onse.

7. Model Evaluaon
Evaluae using merics like accuracy, precision, recall, F1-score, and ROC-AUC o ensure
reliable predicons.
8. Generae Insighs
Analyze which eaures conribue mos o predicons and inerpre he model oupus o
undersand risk acors.

9. Make Daa-Driven Decisions


Use predicons o inorm clinical decisions such as priorizing prevenve care or paen
educaon or high-risk individuals.

10. Implemen and Monior


Deploy he model in clinical workflows and connuously monior predicon accuracy and
paen oucomes or ongoing improvemen.

Specific Example: Diabees Predicon

• Objecve: Reduce new diabees cases by early deecon.

• Daa: Age, BMI, blood glucose, amily hisory, acviy levels, die, prior diagnoses.

• Algorihm: Random Fores classifier rained on hisorical paen daa.

• Oucome: Ideny paens wih a high risk score or developing diabees, enabling
proacve liesyle inervenons and medical monioring.

This model has been demonsraed in mulple sudies o achieve high accuracy (ofen above
80%), supporng early and effecve disease managemen. Addionally, combining predicons
rom models like Random Fores, Suppor Vecor Machines, and Naive Bayes hrough ensemble
approaches can improve overall accuracy

How o Wrie Beauful Pyhon Code wih PEP 8

hps://peps.pyhon.org/pep-0008/#inroducon

hps://realpyhon.com/pyhon-pep8/#why-we-need-pep-8

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