Machine_Learning_and_Econometric（2018）

Two Types of Machine
Learning
SUPERVISED
Independent observations
Stable environment
Regression/prediction:
◦ E[Y|X=x]
Classification
◦ Pr(Y=y|X=x)
UNSUPERVISED
Collections of units characterized
by features
◦ Images
◦ Documents
◦ Individual internet activity history
Find groups of similar items
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