By utilizing business analytics, a company can learn which one of the following?

1. SAS Insights
2. Analytics Insights

What it is and why it matters

Machine learning is a method of data analysis that automates analytical model building. It is a branch of artificial intelligence based on the idea that systems can learn from data, identify patterns and make decisions with minimal human intervention.

Evolution of machine learning

Because of new computing technologies, machine learning today is not like machine learning of the past. It was born from pattern recognition and the theory that computers can learn without being programmed to perform specific tasks; researchers interested in artificial intelligence wanted to see if computers could learn from data. The iterative aspect of machine learning is important because as models are exposed to new data, they are able to independently adapt. They learn from previous computations to produce reliable, repeatable decisions and results. It’s a science that’s not new – but one that has gained fresh momentum.

While many machine learning algorithms have been around for a long time, the ability to automatically apply complex mathematical calculations to big data – over and over, faster and faster – is a recent development. Here are a few widely publicized examples of machine learning applications you may be familiar with:

• The heavily hyped, self-driving Google car? The essence of machine learning.
• Online recommendation offers such as those from Amazon and Netflix? Machine learning applications for everyday life.
• Knowing what customers are saying about you on Twitter? Machine learning combined with linguistic rule creation.
• Fraud detection? One of the more obvious, important uses in our world today.
  

Machine Learning and Artificial Intelligence

While artificial intelligence (AI) is the broad science of mimicking human abilities, machine learning is a specific subset of AI that trains a machine how to learn. Watch this video to better understand the relationship between AI and machine learning. You'll see how these two technologies work, with useful examples and a few funny asides.

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What are some popular machine learning methods?

Two of the most widely adopted machine learning methods are supervised learning and unsupervised learning – but there are also other methods of machine learning. Here's an overview of the most popular types.

Supervised learning algorithms are trained using labeled examples, such as an input where the desired output is known. For example, a piece of equipment could have data points labeled either “F” (failed) or “R” (runs). The learning algorithm receives a set of inputs along with the corresponding correct outputs, and the algorithm learns by comparing its actual output with correct outputs to find errors. It then modifies the model accordingly. Through methods like classification, regression, prediction and gradient boosting, supervised learning uses patterns to predict the values of the label on additional unlabeled data. Supervised learning is commonly used in applications where historical data predicts likely future events. For example, it can anticipate when credit card transactions are likely to be fraudulent or which insurance customer is likely to file a claim.

Unsupervised learning is used against data that has no historical labels. The system is not told the "right answer." The algorithm must figure out what is being shown. The goal is to explore the data and find some structure within. Unsupervised learning works well on transactional data. For example, it can identify segments of customers with similar attributes who can then be treated similarly in marketing campaigns. Or it can find the main attributes that separate customer segments from each other. Popular techniques include self-organizing maps, nearest-neighbor mapping, k-means clustering and singular value decomposition. These algorithms are also used to segment text topics, recommend items and identify data outliers.

Semisupervised learning is used for the same applications as supervised learning. But it uses both labeled and unlabeled data for training – typically a small amount of labeled data with a large amount of unlabeled data (because unlabeled data is less expensive and takes less effort to acquire). This type of learning can be used with methods such as classification, regression and prediction. Semisupervised learning is useful when the cost associated with labeling is too high to allow for a fully labeled training process. Early examples of this include identifying a person's face on a web cam.

Reinforcement learning is often used for robotics, gaming and navigation. With reinforcement learning, the algorithm discovers through trial and error which actions yield the greatest rewards. This type of learning has three primary components: the agent (the learner or decision maker), the environment (everything the agent interacts with) and actions (what the agent can do). The objective is for the agent to choose actions that maximize the expected reward over a given amount of time. The agent will reach the goal much faster by following a good policy. So the goal in reinforcement learning is to learn the best policy.

Humans can typically create one or two good models a week; machine learning can create thousands of models a week.

Thomas H. Davenport, Analytics thought leader
excerpt from The Wall Street Journal

What is defined as knowledge that has been identified captured and leveraged to produce higher value goods or services or some other competitive advantage for the firm?

Which of the following is an example of tacit knowledge?

Which development methodology is more traditional and more structured?

Which type of decision is determining vacation eligibility for an employee quizlet?