Tutorial 2

Answer the following question.

1. Name some Logisticregression problems and deeply explain one of them.
Logisticregression: a process of modeling the probability of a discrete outcome given an input
variable. The most common logistic regression models a binary outcome; something that can
take two values such as true/false, yes/no, and so on.
Logisticregression problems and deeply explain one of them: The bank has a loan program for
apartment buyers. Normally you can go through 10-20 applications a day to decide, but lately
you are receiving 1000-2000 applications per day.You can't process all the applications and you
need a solution to predict the new application as to whether to lend or not. After analyzing, you
find that the two main factors that determine whether to get a loan are salary and working time.
Logically, we need to find the dividing line between the lending and rejection points. Then
decide whether to apply for a new loan or not from that line. However, because the bank is in a
difficult period, the lending is tightened, only those documents with more than 80% certainty can
get a loan.
So now you are not only looking for a loan or not, but you need to find out how much you should
lend to that profile.

2. What is classification and Can Logistic regression solve a classification problem?

Classification: is the process of recognizing, understanding, and grouping ideas and objects into
preset categories or “sub-populations.” Using pre-categorized training datasets, machine learning
programs use a variety of algorithms to classify future datasets into categories.
Logistic regression is a simple yet very powerful algorithm to solve classification problems.

3. What is supervised and un-supervised problems?

Supervised Problems: describes a class of problem that involves using a model to learn a
mapping between input examples and the target variable. Models are fit on training data
comprised of inputs and outputs and used to make predictions on test sets where only the inputs
are provided and the outputs from the model are compared to the withheld target variables and
used to estimate the skill of the model.
Un-supervised Problems: describes a class of problems that involves using a model to describe
or extract relationships in data. Compared to supervised learning, unsupervised learning operates
upon only the input data without outputs or target variables. As such, unsupervised learning does
not have a teacher correcting the model, as in the case of supervised learning.
Practice
Link to Colab: https://colab.research.google.com/drive/1V7cbrGEhlYZH1l1Kauav16uNyDhy7V1A?
usp=sharing