Chapter 9: Machine Learning Techniques

Introduction

Machine learning, as defined by Arthur Samuel in 1959, is a field of computer science that teaches computers how to learn without being explicitly programmed to do so. Machine Learning is a method that allows computer systems to uncover patterns and hidden relationships in the data, and provides tools to make future predictions and forecasts. Machine learning helps analysts dissect larger complex problem into smaller pieces so that they can better understand the data, information set, and relationships between the data item.
While much of the mathematical theory driving machine learning has been around for quite some time, it is still a relatively new application for finance and is just ...

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