Becoming a Data Head

Becoming a Data Head
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"Turn yourself into a Data Head. You'll become a more valuable employee and make your organization more successful."  Thomas H. Davenport, Research Fellow, Author of Competing on Analytics , Big Data @ Work , and The AI Advantage You’ve heard the hype around data—now get the facts.  In Becoming a Data Head: How to Think, Speak, and Understand Data Science, Statistics, and Machine Learning , award-winning data scientists Alex Gutman and Jordan Goldmeier pull back the curtain on data science and give you the language and tools necessary to talk and think critically about it.  You’ll learn how to:  Think statistically and understand the role variation plays in your life and decision making Speak intelligently and ask the right questions about the statistics and results you encounter in the workplace Understand what’s really going on with machine learning, text analytics, deep learning, and artificial intelligence Avoid common pitfalls when working with and interpreting data Becoming a Data Head is a complete guide for data science in the workplace: covering everything from the personalities you’ll work with to the math behind the algorithms. The authors have spent years in data trenches and sought to create a fun, approachable, and eminently readable book. Anyone can become a Data Head—an active participant in data science, statistics, and machine learning. Whether you’re a business professional, engineer, executive, or aspiring data scientist, this book is for you.

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Alex J. Gutman. Becoming a Data Head

PRAISE FOR BECOMING A DATA HEAD

Becoming a Data Head. How to Think, Speak, and Understand Data Science, Statistics, and Machine Learning

About the Authors

About the Technical Editors

Acknowledgments

Table of Contents

List of Tables

List of Illustrations

Guide

Pages

Foreword

NOTE

Introduction

THE DATA SCIENCE INDUSTRIAL COMPLEX

WHY WE CARE

The Subprime Mortgage Crises

The 2016 United States General Election

Our Hypothesis

DATA IN THE WORKPLACE

The Boardroom Scene

YOU CAN UNDERSTAND THE BIG PICTURE

Classifying Restaurants

So What?

WHO THIS BOOK IS WRITTEN FOR

WHY WE WROTE THIS BOOK

WHAT YOU'LL LEARN

HOW THIS BOOK IS ORGANIZED

ONE LAST THING BEFORE WE BEGIN

NOTES

PART I Thinking Like a Data Head

CHAPTER 1 What Is the Problem?

QUESTIONS A DATA HEAD SHOULD ASK

Why Is This Problem Important?

Who Does This Problem Affect?

What If We Don't Have the Right Data?

When Is the Project Over?

What If We Don't Like the Results?

UNDERSTANDING WHY DATA PROJECTS FAIL

Customer Perception

Discussion

WORKING ON PROBLEMS THAT MATTER

CHAPTER SUMMARY

NOTES

CHAPTER 2 What Is Data?

DATA VS. INFORMATION

An Example Dataset

Know Your Audience

DATA TYPES

HOW DATA IS COLLECTED AND STRUCTURED

Observational vs. Experimental Data

Structured vs. Unstructured Data

Is Data One or Many?

BASIC SUMMARY STATISTICS

CHAPTER SUMMARY

NOTES

CHAPTER 3 Prepare to Think Statistically

ASK QUESTIONS

Comment on “Statistical Thinking”

THERE IS VARIATION IN ALL THINGS

Scenario: Customer Perception (The Sequel)5

Case Study: Kidney-Cancer Rates

PROBABILITIES AND STATISTICS

Probability vs. Intuition

Discovery with Statistics

Statistical Thinking Resources

CHAPTER SUMMARY

NOTES

PART II Speaking Like a Data Head

CHAPTER 4 Argue with the Data

WHAT WOULD YOU DO?

Missing Data Disaster

NOTE

Alex's Comment on the Challenger Data

TELL ME THE DATA ORIGIN STORY

Who Collected the Data?

How Was the Data Collected?

IS THE DATA REPRESENTATIVE?

Is There Sampling Bias?

What Did You Do with Outliers?

WHAT DATA AM I NOT SEEING?

How Did You Deal with Missing Values?

Can the Data Measure What You Want It to Measure?

ARGUE WITH DATA OF ALL SIZES

CHAPTER SUMMARY

NOTES

CHAPTER 5 Explore the Data

EXPLORATORY DATA ANALYSIS AND YOU

Are You a Manager or Leader?

EMBRACING THE EXPLORATORY MINDSET

Questions to Guide You

The Setup

CAN THE DATA ANSWER THE QUESTION?

Set Expectations and Use Common Sense

Do the Values Make Intuitive Sense?

Data Visualization Refresher

Watch Out: Outliers and Missing Values

DID YOU DISCOVER ANY RELATIONSHIPS?

Understanding Correlation

Watch Out: Misinterpreting Correlation

Not Correlated but Still Interesting

Watch Out: Correlation Does Not Imply Causation

Smoking and Lung Cancer

DID YOU FIND NEW OPPORTUNITIES IN THE DATA?

CHAPTER SUMMARY

NOTES

CHAPTER 6 Examine the Probabilities

TAKE A GUESS

THE RULES OF THE GAME

Notation

Using “==” Instead of “=”

Conditional Probability and Independent Events

The Probability of Multiple Events

Two Things That Happen Together

One Thing or the Other

Remember the Overlap

PROBABILITY THOUGHT EXERCISE

Next Steps

BE CAREFUL ASSUMING INDEPENDENCE

Don't Fall for the Gambler's Fallacy

ALL PROBABILITIES ARE CONDITIONAL

Don't Swap Dependencies

Bayes' Theorem

ENSURE THE PROBABILITIES HAVE MEANING

Calibration

Rare Events Can, and Do, Happen

Do Not Needlessly Multiply Probabilities

CHAPTER SUMMARY

NOTES

CHAPTER 7 Challenge the Statistics

QUICK LESSONS ON INFERENCE

Give Yourself Some Wiggle Room

More Data, More Evidence

Challenge the Status Quo

Evidence to the Contrary

Balance Decision Errors

THE PROCESS OF STATISTICAL INFERENCE

THE QUESTIONS YOU SHOULD ASK TO CHALLENGE THE STATISTICS

What Is the Context for These Statistics?

What Is the Sample Size?

What Are You Testing?

What Is the Null Hypothesis?

Assuming Equivalence

What Is the Significance Level?

How Many Tests Are You Doing?

Can I See the Confidence Intervals?

Is This Practically Significant?

Are You Assuming Causality?

CHAPTER SUMMARY

NOTES

PART III Understanding the Data Scientist's Toolbox

CHAPTER 8 Search for Hidden Groups

UNSUPERVISED LEARNING

DIMENSIONALITY REDUCTION

Creating Composite Features

PRINCIPAL COMPONENT ANALYSIS

Principal Components in Athletic Ability

PCA Summary

Potential Traps

CLUSTERING

K-MEANS CLUSTERING

Clustering Retail Locations

Potential Traps

Hierarchical Clustering

CHAPTER SUMMARY

NOTES

CHAPTER 9 Understand the Regression Model

SUPERVISED LEARNING

LINEAR REGRESSION: WHAT IT DOES

Least Squares Regression: Not Just a Clever Name

LINEAR REGRESSION: WHAT IT GIVES YOU

Extending to Many Features

LINEAR REGRESSION: WHAT CONFUSION IT CAUSES

Omitted Variables

Multicollinearity

Data Leakage

Extrapolation Failures

Many Relationships Aren't Linear

Are You Explaining or Predicting?

Regression Performance

OTHER REGRESSION MODELS

CHAPTER SUMMARY

NOTES

CHAPTER 10 Understand the Classification Model

INTRODUCTION TO CLASSIFICATION

What You'll Learn

Classification Problem Setup

LOGISTIC REGRESSION

Logistic Regression: So What?

What to Watch Out for When Working with Logistic Regression

DECISION TREES

ENSEMBLE METHODS

Random Forests

Gradient Boosted Trees

Interpretability of Ensemble Models

WATCH OUT FOR PITFALLS

Misapplication of the Problem

Data Leakage

Not Splitting Your Data

Choosing the Right Decision Threshold

MISUNDERSTANDING ACCURACY

Confusion Matrices

Confusing Terms for Confusion Matrices

CHAPTER SUMMARY

NOTES

CHAPTER 11 Understand Text Analytics

EXPECTATIONS OF TEXT ANALYTICS

HOW TEXT BECOMES NUMBERS

A Big Bag of Words

Quick Thoughts on Word Clouds

N-Grams

Word Embeddings

TOPIC MODELING

TEXT CLASSIFICATION

Naïve Bayes

A Deeper Look

Sentiment Analysis

What About Tree-Based Methods on Text?

PRACTICAL CONSIDERATIONS WHEN WORKING WITH TEXT

Big Tech Has the Upper Hand

CHAPTER SUMMARY

NOTES

CHAPTER 12 Conceptualize Deep Learning

NEURAL NETWORKS

How Are Neural Networks Like the Brain?

A Simple Neural Network

How a Neural Network Learns

A Slightly More Complex Neural Network

APPLICATIONS OF DEEP LEARNING

The Benefits of Deep Learning

How Computers “See” Images

Convolutional Neural Networks

Deep Learning on Language and Sequences

DEEP LEARNING IN PRACTICE

Do You Have Data?

Transfer Learning (or How to Work with Small Datasets)

Is Your Data Structured?

What Will the Network Look Like?

Deep Learning for Practitioners

ARTIFICIAL INTELLIGENCE AND YOU

Big Tech Has the Upper Hand

Ethics in Deep Learning

CHAPTER SUMMARY

NOTES

PART IV Ensuring Success

CHAPTER 13 Watch Out for Pitfalls

BIASES AND WEIRD PHENOMENA IN DATA

Survivorship Bias

Regression to the Mean

Simpson's Paradox

Confirmation Bias

Effort Bias (aka the “Sunk Cost Fallacy”)

Algorithmic Bias

Uncategorized Bias

THE BIG LIST OF PITFALLS

Statistical and Machine Learning Pitfalls

Project Pitfalls

CHAPTER SUMMARY

NOTES

CHAPTER 14 Know the People and Personalities

SEVEN SCENES OF COMMUNICATION BREAKDOWNS

The Postmortem

Storytime

The Telephone Game

Into the Weeds

The Reality Check

The Takeover

The Blowhard

DATA PERSONALITIES

Data Enthusiasts

Data Cynics

Data Heads

CHAPTER SUMMARY

NOTES

CHAPTER 15 What's Next?

Index

WILEY END USER LICENSE AGREEMENT

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Big Data, Data Science, Machine Learning, Artificial Intelligence, Neural Networks, Deep Learning … It can be buzzword bingo, but make no mistake, everything is becoming “datafied” and an understanding of data problems and the data science toolset is becoming a requirement for every business person. Alex and Jordan have put together a must read whether you are just starting your journey or already in the thick of it. They made this complex space simple by breaking down the “data process” into understandable patterns and using everyday examples and events over our history to make the concepts relatable.

—Milen Mahadevan, President of 84.51°

.....

We discovered a middle ground between data workers and business professionals where honest discussions about data can take place without being too technical or too simplified. It involves both sides thinking more critically about data problems, large or small. That's what this book is about.

To become better at understanding and working with data you will need to be open to learning seemingly complicated data concepts. And, even if you already know these concepts, we'll teach you how to translate them to your audience of stakeholders.

.....

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