Predicting Loan Repayment
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Questions and Answers

What is the main goal of exploration in reinforcement learning?

  • To assume a prior distribution over the long-term behavior
  • To try to explore underexplored options (correct)
  • To take the average of past observations
  • To stick with options that look best now
  • What is the name of the approach to learning that is being described?

  • Decision theory approach to learning
  • Reinforcement learning
  • Bayesian approach to learning (correct)
  • Game theory approach to learning
  • What is the probability that A is a 'fast route'?

  • 0.25
  • 0.5
  • 0.4
  • 0.6 (correct)
  • What is the probability that A takes 30 minutes given that A is a 'fast route'?

    <p>0.5</p> Signup and view all the answers

    What is the formula used to update the probability that A is a 'fast route' given an observation?

    <p>P(observation | A is fast)*P(A is fast) / P(observation)</p> Signup and view all the answers

    What is the value of P(A is fast | observation) after observing that A takes 30 minutes?

    <p>0.75</p> Signup and view all the answers

    What percentage of games is similar to the example described?

    <p>2/3</p> Signup and view all the answers

    What is the main challenge in learning in game theory?

    <p>The environment is changing because other agents learn at the same time</p> Signup and view all the answers

    What is the main difference between reinforcement learning and game theory?

    <p>Reinforcement learning is studied in MDPs, while game theory is not</p> Signup and view all the answers

    What is the convenient approach for decision theory?

    <p>Bayesian approach</p> Signup and view all the answers

    Study Notes

    Classification and Hypothesis Development

    • Classification aims to predict whether we will be paid back based on various attributes (a, c, i, e, o, u)
    • Multiple hypotheses can be developed to predict payment, including:
      • Income is high
      • Income is high and no Criminal record
      • Complex combinations of attributes (e.g., Address is known, NOT Old, OR Unemployed)

    Nearest Neighbor Approach

    • Nearest neighbor approach predicts payment based on the most similar example in the training data
    • Distance is calculated between the new instance and each training instance
    • The nearest neighbor's payment status is used for prediction

    k-Nearest Neighbors Approach

    • k-Nearest Neighbors (k-NN) approach predicts payment based on the k most similar examples in the training data
    • A vote is taken among the k neighbors to determine the payment status

    Perceptrons Approach

    • Perceptrons approach uses weights to indicate the importance of each attribute in predicting payment
    • Scores are calculated by summing the weighted attributes, and a threshold is set to determine payment status

    Reinforcement Learning

    • Reinforcement learning involves exploration vs. exploitation tradeoff
    • Exploration involves trying new options, while exploitation involves sticking with known good options
    • Reinforcement learning is often studied in Markov Decision Processes (MDPs)

    Bayesian Approach to Learning

    • Bayesian approach assumes a prior distribution over the long-term behavior of a route (e.g., A)
    • The prior distribution is updated based on new observations, allowing for learning and adaptation

    Learning in Game Theory

    • Learning in game theory involves multiple agents learning simultaneously
    • The environment is changing from one agent's perspective, making it challenging to make decisions
    • Taking the average of past observations may not be the best approach in game theory

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    Description

    Determine a hypothesis to predict whether a loan will be paid back based on various factors such as income, criminal record, and more. Analyze the provided data to find the best predictor.

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