Half 3 — Simulating Eventualities

INTRODUCTION

Simulation is a strong software within the knowledge science software field. On this article, we’ll speak about how simulation will help us make higher choices and techniques by simulating attainable eventualities. One key idea we’ll discover all through is how we are able to leverage machine studying fashions and situation simulation to make higher choices.

The precise matters of this text are:

1. State of affairs simulation for optimization
2. State of affairs simulation for threat administration

That is the third half in multi-part collection on simulation in knowledge science. The primary article coated how simulation can be utilized to check machine studying approaches and the second article coated utilizing simulation to estimate the ability of a designed experiment.

WHAT IS DATA SIMULATION?

The primary article spends much more time defining simulation. To keep away from redundancy, I’ll simply give a fast definition right here:

Information simulation is the creation of fictitious knowledge that mimics the properties of the real-world.

Okay, with that out of the way in which, let’s speak about situation simulation!

SCENARIO SIMULATION FOR OPTIMIZATION

Usually, we develop machine studying fashions to make predictions on actual knowledge. For instance, fashions that predict if a tumor is malignant, or if a buyer is more likely to default on their mortgage. In these instances we move actual knowledge into our mannequin to get predictions on actual entities (sufferers, prospects and so forth). Once we use our machine studying fashions for situation evaluation, we frequently use simulated knowledge to see that might occur given sure (simulated)…