Big Data & Data Science at FOM Hochschule Für Oekonomie & Management

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Common Variable Types

Qualitative Variable

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What is a qualitative variable?

Also called categorical variables, take on values that are names or labels e.g. the gender

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What measurement scales are correct?

Nominal scale

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What expresses the nominal scale?

Characteristic attributes can be distinguished, eg gender. A subtype of it with only two categories (eg male/female) is called dichotomous

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What expresses the ordinal scale?

Characteristic attributes can be distinguished and ranked. Eg educational achivement.

! Intervals between the values can neither be compared nor interpreted

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What expresses the metric scale?

Characteristic attributes can be distinguished and ranked
Intervals can be compared
Metric scale divides further into interval and ratio scale

Ratio Scale has a naturally given point of origin (eg body weight)
Interval scale has an artificially given point of origin (eg calculation times)

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What is a Task and what is the character?

Defined as a job a computer program has to learn in order to execute it
Learning itself is not considered as a discrete task
eg Teaching a computer in how to play checkers, then playing checkers itself is the Task T

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Definition of Experience E?

Is defined as a set of training instances from a dataset that is used by a computer program in order to learn how to execute a task T
eg Experience is obtained by the computer program by playing checkers games against itself

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What does perfomance P mean?

Is a measure for evaluating how good a computer program executes a task T
In terms of prediction a very simple measurement is the accuracy i.e. the percentage of correct predictions in relationship to all predictions made
Finding a correct metric which properly and precisely measures the perfomance P of a task T is not a trivial process and closely dependent of the selected model
Perfomance P can be a mathematical objective function value in an optimization process on the one hand
...and also a descriptive and intuitve metric to communicate perfomance to non-technical persons on the other hand

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Finding a correct metric which ... measures the perfomance P of a task T is ... and closely dependent of the selected model.

properly and precisely

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What are things like linear regression or random forests?

Machine learning algorithms

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What are the key features of Supervised learning?

Refers to a group of algorithms that require a dataset of exemplary input-output combinations
- those combinations consist of features used to make predictions and an expected outcome called label
Feature sets are iteratively fed to the algorithm
for each set the algorithm uses the current state of model parameters and returns a prediction
The prediction error is a feedback for the algorithm of what went wrong and how to update the model parameters
Major goal: to find parameter values that allow a model to perform well on historical data and to make predictions on unknown data that have been part of the training set

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Big Data & Data Science at FOM Hochschule für Oekonomie & Management

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