Data Science
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This document provides an introduction to data science. It discusses why data science is important and covers key techniques like statistics, data mining, and visualization. It also reviews popular tools and platforms for data science like R, Hadoop, and real-time systems. Finally, it discusses how data science can be applied across different business domains such as financial services, telecom, retail, and healthcare.
Data Science
- 1. Introduction to Data Science Prithwis Mukerjee, PhD Praxis Business School, Calcutta prithwis mukerjee, ph.d.
- 2. Agenda ● ● ● ● Why data science ? Techniques ○ Statistics ○ Data Mining ○ Visualisation Tools & Platforms ○ R ○ Hadoop / MapReduce ○ Real Time Systems Business Domains prithwis mukerjee, ph.d.
- 4. Volume Data is being acquired from a variety of sources ● ● ● ● ● ● ● EFT in Banks, Credit card payments Cell phones Sensors attached to a variety of equipment Surveillance cameras, CCTV Social Media Updates Blogs Websites prithwis mukerjee, ph.d.
- 5. Variety / Velocity ● ● ● ● ● ● Numeric data Structured text data Unstructured text data Images Sound and video recordings Graph Nodes ○ Social Media “friends” ○ Websites linked to each other prithwis mukerjee, ph.d. Data is being generated fast and is becoming obsolete or useless equally faster ● ● ● Realtime ( or near realtime) data from sensors, cameras Website traffic Social media “trends”
- 6. So what is Big Data ? ● ● ● Volume Velocity Variety ? A new term coined by IT vendors to push new technology like ● ● ● prithwis mukerjee, ph.d. Map Reduce Hadoop NOSQL A new way to ● ● ● ● ● collect store manage analyse visualise data
- 7. Big Data is like Crude Oil { not new Oil } Think of data as crude oil ! Big Data is like extracting the crude oil, transporting it in mega tankers, pumping it through pipelines and storing it in massive silos But what about refining ? prithwis mukerjee, ph.d.
- 8. The Science (and Art ) of Data Think of data as crude oil ! Data Science ● Big Data is like extracting the crude oil, transporting it in mega tankers, pumping it through pipelines and storing it in Refining massive silos prithwis mukerjee, ph.d. ● ● ● Discovering what we do not know about the data Obtaining predictive, actionable insight Creating data products that have business impacts Communicating relevent business stories
- 9. Two Perspectives Programming or “Hacking” Skills Machine Learning Mathematics, Statistics Knowledge Data Science RDBMS ERP / BI Operations Research Business Domain Knowledge prithwis mukerjee, ph.d.
- 10. 10 Things {most} Data Scientists do ... 1. Ask good questions 6. Create models, algorithms What is what ? 7. Under data relationships We do not know ! We would like to know 8. Tell the machine how to learn from the data 2. Define, Test Hypothesis, Run experiments 3, Scoop, scrape, sample business data 4. Wrestle and tame data 5. Play with data, discover unknowns prithwis mukerjee, ph.d. 9. Create data products that deliver actionable insights 10. Tell relevant business stories from data
- 11. Statistics - World of Data ● Data comes in various types ○ Nominal - colour, gender, PIN code ○ Ordinal - scale of 1-10, {high, medium, low} ○ Interval - Dates, Temperature (Centigrade) ○ Ratio - length, weight, count prithwis mukerjee, ph.d. ● Data comes in various structure ○ Structured data - nominal, ordinal, interval, ratio ○ Unstructured text - email, tweets, reviews ○ Images, voice prints ○ graphs, networks - social media friendships, likes
- 12. Descriptive Statistics ● Numeric Description ○ Mean, Median, Mode ○ Quartile, Percentile ○ Variance / Standard Deviation prithwis mukerjee, ph.d.
- 13. Statistics : The Path Ahead Probability, Distributions prithwis mukerjee, ph.d. Testing of Hypothesis Regression, Testing Predictive Analysis
- 14. Data Mining / Machine Learning Is the process of obtaining Typical tasks are ● novel ● classification ● valid ● clustering ● potentially useful ● association rules ● understandable ● sequential patterns ● regression ● deviation detection patterns in data prithwis mukerjee, ph.d.
- 15. Some definitions Instance ( an item or record) ● an observation that is characterised by a number of attributes ○ ○ person - with attributes like age, salary, qualification sale - with product, quantity, price Attribute ● measuring characteristics of an instance Class ● grouping of an instance into ○ ○ acceptable, not acceptable mammal, fish, bird prithwis mukerjee, ph.d. Nominal ● colour, PIN code, state Ordinal ● ranking : tall, medium, short or feedback on a scale of 1 - 10 Ratio ● length, price, duration, quantity Interval ● date, temperature
- 16. Data Mining : Classification Classification ● ● Which loan applicant will not default on the loan ? Which potential customer will respond to a mailer campaign ? prithwis mukerjee, ph.d.
- 17. Classification Example s l ca uou ri go ontin lass c ate c l a ric o teg ca c Test Set Learn Classifier prithwis mukerjee, ph.d. Training Set Model
- 18. Data Mining : Clustering Given a set of unclassified data points, how to find a natural grouping within them ● Can we segment the market in some way that is not yet known ? prithwis mukerjee, ph.d.
- 19. Example of Document Clustering Clustering points : 3204 article from the Los Angeles Times Similarity Measure : How many words are common in these documents ( after excluding some common words ) prithwis mukerjee, ph.d.
- 20. Clustering of S&P Stock Data ● ● ● ● Observe Stock Movements every day. Clustering points: Stock{UP/DOWN} Similarity Measure: Two points are more similar if the events described by them frequently happen together on the same day. We used association rules to quantify a similarity measure. prithwis mukerjee, ph.d.
- 21. Regression ● Predict a value of a given continuous valued variable based on the values of other variables, assuming a linear or nonlinear model of dependency. ○ Greatly studied in statistics, neural network fields. ● Examples: ○ Predicting sales amounts of new product based on advertising expenditure. ○ Predicting wind velocities as a function of temperature, humidity, air ○ pressure, etc. Time series prediction of stock market indices. prithwis mukerjee, ph.d.
- 22. Data Mining : Association Rules Mining Association Rules ● ● which products should be kept along with other products which two products should never be discounted together prithwis mukerjee, ph.d.
- 23. Visualisation : The need to tell a story prithwis mukerjee, ph.d.
- 24. Visualisation : The need to tell a story prithwis mukerjee, ph.d.
- 25. Definitions Data Mining ● ● Is the process of extracting unknown, valid and actionable information from large databases and using this to make business decisions Non trivial process of identifying valid, novel, potentially useful and understandable / explainable patterns in data prithwis mukerjee, ph.d. Data Science is a rare combination of multiple skills that include ● Technology : obviously ! but also ● ● ● Curiosity - a desire to go below the surface and discover a hypothesis that can be tested Storytelling - create a business story around the data Cleverness - again obviously, to look at the problem from different angles
- 27. R : Your first step into Data Science prithwis mukerjee, ph.d. Try out this free interactive tutorial just now
- 28. Statistical Tools prithwis mukerjee, ph.d. http://r4stats.com/articles/popularity/
- 29. Some Comparisons prithwis mukerjee, ph.d.
- 30. Map Reduce ● ● ● Input : A set of (key, value) pairs User supplies two functions ○ Map (k,v) => List(k1,v1) ○ Reduce (k1, list(v1)) => v2 Output is the set of (k1,v2) pairs prithwis mukerjee, ph.d.
- 31. Hadoop A programming framework that allows you to run Map-Reduce jobs on a distributed cluster of low cost machines without having to bother about anything except ● ● the Map and Reduce functions loading data into HDFS 1. 2. 3. 4. prithwis mukerjee, ph.d. HIVE a. A plug-in that allows one to use SQL like queries that are converted into map-reduce jobs PIG a. A scripting language for writing long queries HBASE a. A non-relational DBMS SQOOP a. moves data to andfrom HDFS
- 33. JavaScript for Data Visualisation prithwis mukerjee, ph.d.
- 34. Business Domain ● ● Financial Sector ○ Risk Management, Credit Scoring ○ Predict Customer Spend ○ Stock and Investment Analysis ○ Loan approval Telecom Sector ○ Fraud Detection ○ Churn Prediction prithwis mukerjee, ph.d. ● ● Retail and Marketing ○ Market segmentation ○ Promotional strategy ○ Market Basket Analysis ○ Trend Analysis Healthcare & Insurance ○ Fraud Detection ○ Drug Development ○ Medical Diagnostic Tools
- 35. Conclusion ● ● ● ● Why data science ? Techniques ○ Statistics ○ Data Mining ○ Visualisation Tools & Platforms ○ R ○ Hadoop / MapReduce ○ Real Time Systems Business Domains Data Science is a rare combination of multiple skills that include ● but also ● ● ● prithwis mukerjee, ph.d. Technology : obviously ! Curiosity - a desire to go below the surface and discover a hypothesis that can be tested Storytelling - create a business story around the data Cleverness - again obviously, to look at the problem from different angles
- 37. Thank You Contact This presentation is accessible at at the blog Prithwis Mukerjee Professor, Praxis Business School http://blog.yantrajaal.com [email protected] at the following URL http://bit.ly/pm-datascience prithwis mukerjee, ph.d.