- Phalanx Analysis Group

# Supervised Learning

Supervised machine learning builds a model that makes predictions based on evidence in the presence of uncertainty. A supervised learning algorithm takes a known set of input data and known responses to the data (output) and trains a model to generate reasonable predictions for the response to new data. Use supervised learning if you have known data for the output you are trying to predict.

Supervised learning uses classification and regression techniques to develop predictive models.

Classification techniques predict discrete responses—for example, whether an email is genuine or spam, or whether a tumor is cancerous or benign. Classification models classify input data into categories. Typical applications include medical imaging, speech recognition, and credit scoring.

Use classification if your data can be tagged, categorized, or separated into specific groups or classes. For example, applications for hand-writing recognition use classification to recognize letters and numbers. In image processing and computer vision, unsupervised pattern recognition techniques are used for object detection and image segmentation.

Common algorithms for performing classification include support vector machine (SVM), boosted and bagged decision trees, k-nearest neighbor, Naïve Bayes, discriminant analysis, logistic regression, and neural networks.

Regression techniques predict continuous responses—for example, changes in temperature or fluctuations in power demand. Typical applications include electricity load forecasting and algorithmic trading.

Use regression techniques if you are working with a data range or if the nature of your response is a real number, such as temperature or the time until failure for a piece of equipment.

Common regression algorithms include linear model, nonlinear model, regularization, stepwise regression, boosted and bagged decision trees, neural networks, and adaptive neuro-fuzzy learning.