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Principles of Data Science

Copyright © 2024 Packt Publishing

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior written permission of the publisher, except in the case of brief quotations embedded in critical articles or reviews.

Every effort has been made in the preparation of this book to ensure the accuracy of the information presented. However, the information contained in this book is sold without warranty, either express or implied. Neither the author, nor Packt Publishing or its dealers and distributors, will be held liable for any damages caused or alleged to have been caused directly or indirectly by this book.

Packt Publishing has endeavored to provide trademark information about all of the companies and products mentioned in this book by the appropriate use of capitals. However, Packt Publishing cannot guarantee the accuracy of this information.

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Publishing Product Manager: Tejashwini R

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First published: December 2016

Second edition: December 2018

Third edition: Jan 2024

Production reference: 1120124

Published by Packt Publishing Ltd.

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B3 1RB, UK

ISBN 978-1-83763-630-3

I have dedicated many books to many loved ones in the past, and for this edition, I want to dedicate this work to the people of Packt Publishing, who not only gave me my first chance at writing a book when I was early in my career but have stuck by me and continued to release editions with me since.

Thank you to everyone at Packt Publishing for all of your hard work, patience, and dedication to my work!

Contributor

About the author

Sinan Ozdemir is an active lecturer on large language models and a former lecturer of data science at Johns Hopkins University. He is the author of multiple textbooks on data science and machine learning, including Quick Start Guide to LLMs. Sinan is currently the founder of LoopGenius, which uses AI to help people and businesses boost their sales, and was previously the founder of the acquired Kylie.ai, an enterprise-grade conversational AI platform with RPA capabilities. He holds a master’s degree in pure mathematics from Johns Hopkins University and is based in San Francisco.

About the reviewer

Jigyasa Grover, a 10-time award winner in AI and open source and the coauthor of the book Sculpting Data for ML, is a powerhouse brimming with passion to make a dent in this world of technology and bridge the gaps. With years of machine learning engineering and data science experience in deploying large‐scale systems for monetization on social networking and e‐commerce platforms, she primarily focuses on ad prediction, sponsored content ranking, and recommendation. She is an avid proponent of open source and credits her access to opportunities and career growth to this sphere of community development. In her spirit to build a powerful community with

a strong belief in the axiom, “We rise by lifting others,” she actively mentors developers and machine learning enthusiasts.

Table of Contents

Preface

1

Data Science Terminology

What is data science?

Understanding basic data science terminology

Why data science?

Example – predicting COVID-19 with machine learning

The data science Venn diagram

The math

Computer programming

Example – parsing a single tweet

Domain knowledge

Some more terminology

Data science case studies

Case study – automating government paper pushing

Case study – what’s in a job description?

Summary

2 Types of Data

Structured versus unstructured data

Quantitative versus qualitative data

Digging deeper

The four levels of data

The nominal level

Measures of center

The ordinal level

The interval level

The ratio level

Data is in the eye of the beholder

Summary

Questions and answers 3 The Five Steps of Data Science

Introduction to data science

Overview of the five steps

Exploring the data

Guiding questions for data exploration

DataFrames

Series

Exploration tips for qualitative data

Summary

4

Basic Mathematics

Basic symbols and terminology

Vectors and matrices

Arithmetic symbols

Summation

Logarithms/exponents

Set theory

Linear algebra

Matrix multiplication

How to multiply matrices together

Summary

Impossible or Improbable – A Gentle

Introduction to Probability

Basic definitions

What do we mean by “probability”?

Bayesian versus frequentist

Frequentist approach

The law of large numbers

Compound events

Conditional probability

How to utilize the rules of probability

The addition rule

Mutual exclusivity

The multiplication rule

Independence

Complementary events

Introduction to binary classifiers

Summary

Advanced Probability

Bayesian ideas revisited

Bayes’ theorem

More applications of Bayes’ theorem

Random variables

Discrete random variables

Continuous random variables

Summary

7

What Are the Chances? An Introduction to

Statistics

What are statistics?

How do we obtain and sample data?

Obtaining data

Observational

Experimental

Sampling data

How do we measure statistics?

Measures of center

Measures of variation

The coefficient of variation

Measures of relative standing

The insightful part – correlations in data

The empirical rule

Example – exam scores

Summary

8

Advanced Statistics

Understanding point estimates

Sampling distributions

Confidence intervals

Hypothesis tests

Conducting a hypothesis test

One-sample t-tests

Type I and Type II errors

Hypothesis testing for categorical variables

Chi-square goodness of fit test

Chi-square test for association/independence

Summary

Communicating Data

Why does communication matter?

Identifying effective visualizations

Scatter plots

Line graphs

Bar charts

Histograms

Box plots

When graphs and statistics lie

Correlation versus causation

Simpson’s paradox

If correlation doesn’t imply causation, then what does?

Verbal communication

It’s about telling a story

On the more formal side of things

The why/how/what strategy for presenting

Summary

How to Tell if Your Toaster is Learning –

Machine Learning Essentials

Introducing ML

Example – facial recognition

ML isn’t perfect

How does ML work?

Types of ML SL UL RL

Overview of the types of ML

ML paradigms – pros and cons

Predicting continuous variables with linear regression

Correlation versus causation

Causation

Adding more predictors

Regression metrics

Summary

Predictions Don’t Grow on Trees, or Do They?

Performing naïve Bayes classification

Classification metrics

Understanding decision trees

Measuring purity

Exploring the Titanic dataset

Dummy variables

Diving deep into UL

When to use UL

k-means clustering

The Silhouette Coefficient

Feature extraction and PCA

Summary

12 Introduction to Transfer Learning and PreTrained Models

Understanding pre-trained models

Benefits of using pre-trained models

Commonly used pre-trained models

Decoding BERT’s pre-training

TL

Different types of TL

Inductive TL

Transductive TL

Unsupervised TL – feature extraction

TL with BERT and GPT

Examples of TL

Example – Fine-tuning a pre-trained model for text classification

Summary

13

Mitigating Algorithmic Bias and Tackling Model and Data Drift

Understanding algorithmic bias

Types of bias

Sources of algorithmic bias

Measuring bias

Consequences of unaddressed bias and the importance of fairness

Mitigating algorithmic bias

Mitigation during data preprocessing

Mitigation during model in-processing

Mitigation during model postprocessing

Bias in LLMs

Uncovering bias in GPT-2

Emerging techniques in bias and fairness in ML

Understanding model drift and decay

Model drift

Data drift

Mitigating drift

Understanding the context

Continuous monitoring

Regular model retraining

Implementing feedback systems

Model adaptation techniques

Summary

14 AI Governance

Mastering data governance

Current hurdles in data governance

Data management: crafting the bedrock

Data ingestion – the gateway to information

Data integration – from collection to delivery

Data warehouses and entity resolution

The quest for data quality

Documentation and cataloging – the unsung heroes of governance

Understanding the path of data

Regulatory compliance and audit preparedness

Change management and impact analysis

Upholding data quality

Troubleshooting and analysis

Navigating the intricacy and the anatomy of ML governance

ML governance pillars

Model interpretability

The many facets of ML development

Beyond training – model deployment and monitoring

A guide to architectural governance

The five pillars of architectural governance

Transformative architectural principles

Zooming in on architectural dimensions

Summary 15

Navigating Real-World Data Science Case Studies in Action

Introduction to the COMPAS dataset case study

Understanding the task/outlining success

Preliminary data exploration

Preparing the data for modeling

Final thoughts

Text embeddings using pretrainedmodels and OpenAI

Setting up and importing necessary libraries

Data collection – fetching the textbook data

Converting text to embeddings

Querying – searching for relevant information

Concluding thoughts – the power of modern pre-trained models

Summary Index

Other Books You May Enjoy

Preface

Principles of Data Science bridges mathematics, programming, and business analysis, empowering you to confidently pose and address complex data questions and construct effective machine learning pipelines. This book will equip you with the tools you need to transform abstract concepts and raw statistics into actionable insights.

Starting with cleaning and preparation, you’ll explore effective data mining strategies and techniques before moving on to building a holistic picture of how every piece of the data science puzzle fits together. Throughout the book, you’ll discover statistical models with which you can control and navigate even the densest or sparsest of datasets and learn how to create powerful visualizations that communicate the stories hidden in your data.

With a focus on application, this edition covers advanced transfer learning and pre-trained models for NLP and vision tasks. You’ll get to grips with advanced techniques for mitigating algorithmic bias in data as well as models and addressing model and data drift. Finally, you’ll explore medium-level data governance, including data provenance, privacy, and deletion request handling.

By the end of this data science book, you’ll have learned the fundamentals of computational mathematics and statistics, all while navigating the intricacies of modern machine learning and large pre-trained models such as GPT and BERT.

Who is this book for?

If you are an aspiring novice data scientist eager to expand your knowledge, this book is for you. Whether you have basic math skills and want to apply them in the field of data science, or you excel in programming but lack the necessary mathematical foundations, you’ll find this book useful. Familiarity with Python programming will further enhance your learning experience.

What this book covers

Chapter 1, Data Science Terminology, describes the basic terminology used by data scientists. We will cover the differences between often-confused terms as well as looking at examples of each term used in order to truly understand how to communicate in the language of data science. We will begin by looking at the broad term data science and then, little by little, get more specific until we arrive at the individual subdomains of data science, such as machine learning and statistical inference. This chapter will also look at the three main areas of data science, which are math, programming, and domain expertise. We will look at each one individually and understand the uses of each. We will also look at the basic Python packages and the syntax that will be used throughout the book.

Chapter 2, Types of Data, deals with data types and the way data is observed. We will explore the different levels of data as well as the different forms of data. Specifically, we will understand the differences between structured/unstructured data, quantitative/qualitative data, and more.

Chapter 3, The Five Steps of Data Science, deals with the data science process as well as data wrangling and preparation. We will go into the five steps of data science and give examples of the process at every step of the way. After we cover the five steps of data science, we will turn to data wrangling, which is the data exploration/preparation stage of the process. In order to best understand these principles, we will use extensive examples to explain each step. I will also provide tips to look for when exploring data,

including looking for data on different scales, categorical variables, and missing data. We will use pandas to check for and fix all of these things.

Chapter 4, Basic Mathematics, goes over the elementary mathematical skills needed by any data scientist. We will dive into functional analysis and use matric algebra as well as calculus to show and prove various outcomes based on real-world data problems.

Chapter 5, Impossible or Improbable – A Gentle Introduction to Probability, focuses heavily on the basic probability that is required for data science. We will derive results from data using probability rules and begin to see how we view real-world problems using probability. This chapter will be highly practical and Python will be used to code the examples.

Chapter 6, Advanced Probability, is where we explore how to use Python to solve more complex probability problems and also look at a new type of probability called Bayesian inference. We will use these theorems to solve real-world data scenarios such as weather predictions.

Chapter 7, What Are the Chances? An Introduction to Statistics, is on basic statistics, which is required for data science. We will also explore the types of statistical errors, including type I and type II errors, using examples. These errors are as essential to our analysis as the actual results. Errors and their different types allow us to dig deeper into our conclusions and avoid potentially disastrous results. Python will be used to code up statistical problems and results.

Chapter 8, Advanced Statistics, is where normalization is key. Understanding why and how we normalize data will be crucial. We will cover basic plotting, such as scatter plots, bar plots, and histograms. This chapter will also get into

statistical modeling using data. We will not only define the concept as using math to model a real-world situation, but we will also use real data in order to extrapolate our own statistical models. We will also discuss overfitting. Python will be used to code up statistical problems and results.

Chapter 9, Communicating Data, deals with the different ways of communicating results from our analysis. We will look at different presentation styles as well as different visualization techniques. The point of this chapter is to take our results and be able to explain them in a coherent, intelligible way so that anyone, whether they are data-savvy or not, may understand and use our results. Much of what we will discuss will be how to create effective graphs through labels, keys, colors, and more. We will also look at more advanced visualization techniques such as parallel coordinates plots.

Chapter 10, How to

Tell if Your Toaster is Learning – Machine Learning

Essentials, focuses on machine learning as a part of data science. We will define the different types of machine learning and see examples of each kind. We will specifically cover areas in regression, classification, and unsupervised learning. This chapter will cover what machine learning is and how it is used in data science. We will revisit the differences between machine learning and statistical modeling and how machine learning is a broader category of the latter. Our aim will be to utilize statistics and probability in order to understand and apply essential machine learning skills to practical industries such as marketing. Examples will include predicting star ratings of restaurant reviews, predicting the presence of disease, spam email detection, and much more. This chapter focuses more on statistical and probabilistic models. The next chapter will deal with models that do not fall

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