Chapter 2The Machine-Learning Approach

In the previous chapter, you learned about the basics of machine learning, terminology associated with machine-learning systems, and different types of models. In this chapter, you will examine a hypothetical scenario in which a rule-based system is devised to process credit card applications. The limitations of the rule-based system will then be examined, and a machine-learning system will be devised to address some of those limitations. The chapter will conclude with an overview of the steps involved in building a typical machine-learning solution.

By the time you finish this chapter, you should have a better understanding of how machine-learning systems are built and their strengths over traditional approaches.

The Traditional Rule-Based Approach

As humans, we are familiar with the concept of learning. Learning takes two major forms—memorization and understanding. There is a clear difference between memorizing your password and learning to drive a car. The latter involves understanding how the vehicle works and how to react in different situations on the road. You do not memorize the exact sequence of activities you need to perform to drive between your home and your place of work; instead, you apply the understanding you have ...

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