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Different Types of Models

The document outlines different types of models used in data analysis, categorized by the questions they answer: regression models for numerical outputs, classification models for categorical groupings, and clustering algorithms for segmenting data. It also describes three key model types: linear regression for simple trends, decision trees for branching logic, and neural networks for complex relationships. The choice of model depends on the specific question, data type, computational resources, and relationship complexity.
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0% found this document useful (0 votes)
23 views4 pages

Different Types of Models

The document outlines different types of models used in data analysis, categorized by the questions they answer: regression models for numerical outputs, classification models for categorical groupings, and clustering algorithms for segmenting data. It also describes three key model types: linear regression for simple trends, decision trees for branching logic, and neural networks for complex relationships. The choice of model depends on the specific question, data type, computational resources, and relationship complexity.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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📘 Lesson Title: Different Types of Models

❓ Models Based on Questions They Answer

 Regression Models answer “how much” or “how many”


questions; they produce numerical outputs.

o Example: Predicting sales numbers or stock prices.

 Classification Models answer categorical questions — “which


group/class does this belong to?”

o Can be binary (e.g., yes/no, true/false) or multiclass (e.g., dog,


cat, human).

o Used in healthcare (diagnosis), marketing (churn prediction),


etc.

 Clustering Algorithms group data into similar segments based on


patterns — no predefined labels.

o Used for market segmentation, audience targeting, and


sociological research.

o Can uncover natural groupings like “young urban professionals”


or “new parents.”

🔁 Three Key Model Types by Algorithm

1. Linear Regression

 A simple model best for finding linear trends.

 Data-light (doesn’t need much data), but limited to basic


relationships.

2. Decision Trees

 Use a tree-like branching logic with a series of if-then decisions.

 Can handle both classification and regression problems.

 Random Forest: a combination of multiple decision trees for better


accuracy.

 Good for credit scoring, risk assessment, and low-complexity


environments.

3. Neural Networks
 Composed of layers of artificial “neurons” that model complex
relationships.

 Require large datasets and high computing power.

 Common in AI, image recognition, autonomous vehicles, and


generative tools.

🔑 Final Takeaways

 Choosing the right model depends on:

o The question being asked

o The type and volume of data

o Computational resources

o The complexity of the relationships

 The effectiveness of a model is tied to its suitability for the task.

📍 Understanding model types—regression, classification, clustering—and


selecting the right algorithm (e.g., linear regression, decision trees, neural
networks) is critical to effective data analysis and prediction.

Common Model Types

Regression Models

Predict ‘How much’ or ‘how many’


Classification Models

Predict class or category a datapoint belongs to


Clustering Models

Identify groups of similar records in your data

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