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Machine Learning and Business Analytics


Course Description

Topics in supervised learning, unsupervised learning, dimension reduction, and feature selection. Course covers multiple methods (e.g., regression, tree-based models, and deep-learning models) and their implementation in the R computing environment. An emphasis is placed on rigorously training and testing models to achieve high reliability and accuracy.

Additional Requirements for Graduate Students:
In addition to the undergraduate requirements, graduate students will complete an extra project deliverable involving the development and evaluation of a machine learning model, utilizing data they collect independently.


Athena Title

Machine Learning Bus Analytics


Undergraduate Prerequisite

MIST 4600 or MIST 4600E with a minimum grade of C


Graduate Prerequisite

MIST 4600 or MIST 4600E with a minimum grade of C


Semester Course Offered

Offered every year.


Grading System

A - F (Traditional)


Student Learning Outcomes

  • Students will learn fundamentals of machine learning, including cross-validation, loss functions and model fit, and feature selection.
  • Students will learn tradeoffs in machine learning design (bias-variance tradeoff, overfitting vs. underfitting, parameter tuning).
  • Students will learn supervised learning for both regression and classification problems.
  • Students will learn unsupervised learning and dimension reduction.
  • Students will learn the use of machine learning models for prescriptive applications in business.
  • Students will learn deployment and maintenance of machine learning models.
  • Students will learn supervised learning in R (linear regression, logistic regression, decision trees, SVM, neural networks).
  • Students will learn unsupervised learning in R (centroid clustering, mixture models).
  • Students will learn to conduct cross-validation as part of a machine learning training pipeline.
  • Students will learn to conduct simulations to test alternative policy choices.
  • Students will learn to implement a cloud-based machine learning pipeline.

Topical Outline

  • Module 1: Basics of Machine Learning
  • Introduction to loss functions, features, labels, and parameters
  • Basics of linear algebra, calculus, and probability
  • Training versus testing data and cross-validation
  • Bias-variance tradeoff, overfitting, and underfitting
  • Module 2: Regression Models
  • Linear regression in R
  • Interaction terms and dummy variables
  • Generalized linear models
  • Regularization
  • Module 3: Classification Models
  • Logistic regression
  • Tree-based models
  • Support vector machines
  • Neural networks
  • Module 4: Unsupervised Methods
  • Centroid methods such as K-means
  • Mixture models
  • Dimension reduction, including PCA and factor analysis
  • Module 5: Prescriptive Models
  • Basic optimization concepts, with an introduction to linear programming
  • Simulation in R, including Monte Carlo methods
  • Module 6: Deployment
  • Basic design principles of a machine learning pipeline
  • Integrating machine learning models into a cloud environment
  • Best practices for maintaining and updating the pipeline

Syllabus