Podcast
Questions and Answers
What is the reference category for self-perceived health status?
What is the reference category for self-perceived health status?
Which region is marked as the reference category in the dataset?
Which region is marked as the reference category in the dataset?
What percentage of senior citizens in the sample have private insurance?
What percentage of senior citizens in the sample have private insurance?
What is the primary focus of predictive analytics?
What is the primary focus of predictive analytics?
Signup and view all the answers
Which of the following is NOT considered a legitimate use for predictive analytics?
Which of the following is NOT considered a legitimate use for predictive analytics?
Signup and view all the answers
Which machine learning technique primarily focuses on predictive analytics?
Which machine learning technique primarily focuses on predictive analytics?
Signup and view all the answers
What does the term 'chronic illnesses' refer to in the dataset?
What does the term 'chronic illnesses' refer to in the dataset?
Signup and view all the answers
How many senior citizens are included in the sample mentioned?
How many senior citizens are included in the sample mentioned?
Signup and view all the answers
Who are the primary beneficiaries of algorithmic transparency in XAI?
Who are the primary beneficiaries of algorithmic transparency in XAI?
Signup and view all the answers
What does realistic representation in XAI primarily focus on?
What does realistic representation in XAI primarily focus on?
Signup and view all the answers
Which of the following is NOT one of the primary goals of the stakeholders of XAI?
Which of the following is NOT one of the primary goals of the stakeholders of XAI?
Signup and view all the answers
What role do domain experts play in the context of realistic representation in XAI?
What role do domain experts play in the context of realistic representation in XAI?
Signup and view all the answers
What do external regulators primarily inspect regarding AI technologies?
What do external regulators primarily inspect regarding AI technologies?
Signup and view all the answers
Which group is mainly concerned with the ethical implications of AI deployments?
Which group is mainly concerned with the ethical implications of AI deployments?
Signup and view all the answers
What aspect of AI does prescriptive actionability concern in XAI?
What aspect of AI does prescriptive actionability concern in XAI?
Signup and view all the answers
Trustworthiness, confidence, and generalizability are concepts related to which aspect of XAI?
Trustworthiness, confidence, and generalizability are concepts related to which aspect of XAI?
Signup and view all the answers
What does a lower Mean Absolute Error (MAE) indicate about predictions?
What does a lower Mean Absolute Error (MAE) indicate about predictions?
Signup and view all the answers
Why is it essential to have explanations behind accurate predictions in prescriptive analytics?
Why is it essential to have explanations behind accurate predictions in prescriptive analytics?
Signup and view all the answers
What is a consequence of relying solely on accurate models without understanding how they work?
What is a consequence of relying solely on accurate models without understanding how they work?
Signup and view all the answers
What does Explainable AI (XAI) aim to provide in the context of predictive modeling?
What does Explainable AI (XAI) aim to provide in the context of predictive modeling?
Signup and view all the answers
What capability does simulation provide in the context of prescriptive analytics?
What capability does simulation provide in the context of prescriptive analytics?
Signup and view all the answers
Which statement best describes the relationship between accurate predictions and explanations in prescriptive analytics?
Which statement best describes the relationship between accurate predictions and explanations in prescriptive analytics?
Signup and view all the answers
What is the role of input features in prescriptive analytics?
What is the role of input features in prescriptive analytics?
Signup and view all the answers
What defines high controllability of concepts for managers?
What defines high controllability of concepts for managers?
Signup and view all the answers
What is the primary responsibility of managers under conditions of high control?
What is the primary responsibility of managers under conditions of high control?
Signup and view all the answers
Which analytics stage provides managers with insights based on past data?
Which analytics stage provides managers with insights based on past data?
Signup and view all the answers
What should managers do when they have low or no control over a concept?
What should managers do when they have low or no control over a concept?
Signup and view all the answers
What is the goal of prescriptive analytics for managers?
What is the goal of prescriptive analytics for managers?
Signup and view all the answers
What is a key focus of ethical responsibility in explainable AI (XAI)?
What is a key focus of ethical responsibility in explainable AI (XAI)?
Signup and view all the answers
Explainable AI (XAI) helps managers by providing which of the following?
Explainable AI (XAI) helps managers by providing which of the following?
Signup and view all the answers
Why is actionable explanation important for managers?
Why is actionable explanation important for managers?
Signup and view all the answers
Which of the following best describes prescriptive actionability in XAI?
Which of the following best describes prescriptive actionability in XAI?
Signup and view all the answers
In the context of XAI, what does privacy refer to?
In the context of XAI, what does privacy refer to?
Signup and view all the answers
During which conditions should managers anticipate and measure the concept's values?
During which conditions should managers anticipate and measure the concept's values?
Signup and view all the answers
What is an ALE plot used for in the context of XAI?
What is an ALE plot used for in the context of XAI?
Signup and view all the answers
Which group of stakeholders is prioritized by managers when implementing XAI?
Which group of stakeholders is prioritized by managers when implementing XAI?
Signup and view all the answers
What challenge does XAI face when balancing accuracy and explainability?
What challenge does XAI face when balancing accuracy and explainability?
Signup and view all the answers
Which aspect of XAI involves stimulating interaction with users?
Which aspect of XAI involves stimulating interaction with users?
Signup and view all the answers
In the context of XAI, what is the relevance of causality?
In the context of XAI, what is the relevance of causality?
Signup and view all the answers
What is the significance of the Ultimate concept in a project?
What is the significance of the Ultimate concept in a project?
Signup and view all the answers
Which of the following accurately describes a Relevant concept?
Which of the following accurately describes a Relevant concept?
Signup and view all the answers
What should managers do regarding concepts designated as Not Relevant?
What should managers do regarding concepts designated as Not Relevant?
Signup and view all the answers
Which option correctly describes the control levels of concepts?
Which option correctly describes the control levels of concepts?
Signup and view all the answers
In the context of actionable explanations, what is the outcome of classifying concepts?
In the context of actionable explanations, what is the outcome of classifying concepts?
Signup and view all the answers
What is a potential managerial implication of having a high control concept?
What is a potential managerial implication of having a high control concept?
Signup and view all the answers
What does the term 'relevance' imply in actionable explanations?
What does the term 'relevance' imply in actionable explanations?
Signup and view all the answers
Which of the following is NOT a key attribute of concepts in actionable explanation?
Which of the following is NOT a key attribute of concepts in actionable explanation?
Signup and view all the answers
Study Notes
Prescriptive Analytics and Explainable AI
- Prescriptive Analytics and Explainable AI (XAI) are presented in a business context, within a postgraduate program (PGE M1).
- Chitu Okoli, Professor of Digitalization from SKEMA Business School, Paris, is the presenter.
Conscientious Commerce
- Conscientious Commerce is contrasted with Pure Money Commerce
- Pure Money Commerce is characterized by buying low, selling high, with no concern for the other person in the transaction.
- Conscientious Commerce prioritizes creating value and ensuring fair deals for all parties. It centers on the ethical principle of being honest and transparent.
Data Analytics Stages
- Data analytics has three stages:
- Descriptive analytics
- Predictive analytics
- Prescriptive analytics
Descriptive Analytics and Data Visualization
- Descriptive analysis examines past data to identify patterns and trends.
- Data visualization presents data in an engaging, insightful manner, facilitating easy understanding and accurate interpretation.
- Data visualization should be accurate and not misleading, avoiding statistical tricks.
Role-playing Exercise (Health Insurance)
- The exercise focuses on health insurance management for senior citizens (age 66 and older).
- US private health insurance often covers all medical costs, in contrast to systems such as France's mutuelle, which allows individuals to contribute to potential future costs.
- Balancing providing adequate care with reducing costs and maximizing profit is crucial for the exercise's scenario.
US National Medical Expenditure Survey (NMES) Dataset
- This dataset is for analyzing hospital stays and related factors in a sample group of US aging citizens (66+ years).
- Variables include hospital stays, self-perceived health, chronic illnesses, activities of daily living, region, age, gender, marriage status, education, income, employment status, private insurance and Medicaid coverage.
AI-Powered Descriptive Analytics (Microsoft Excel)
- Al-powered descriptive analytics capabilities are available in Microsoft Excel, facilitating easier data analysis.
Predictive Analytics
- Predictive Analytics analyzes past data to forecast future outcomes, assuming the future will mirror the past.
- It focuses on accurately estimating the target outcome using input factors, which can include incidental details.
- Predictive analytics use cases include prioritizing actions, simulating scenarios, and anticipating outcomes with limited manager control.
Altair Al Studio (RapidMiner)
- Altair Al Studio (RapidMiner) is a data analysis tool, visualizing a user interface with various aspects of model building.
Best-Performing Model for Predicting Hospital Stays
- Evaluating models depends on factors such as Mean Absolute Error (MAE).
- Lower values suggest greater accuracy in the predictions.
Gradient Boosted Tree Model
- Gradient Boosted Trees is a model for predicting hospital stays.
- Key factors associated with the number of hospital stays might include demographic and health data such as income, chronic illnesses, health status, activity levels, and insurance. These are determined/ranked by analysis of model weights .
Prescriptive Analytics
- Prescriptive Analytics analyzes the past to determine how to intervene to create a better future compared to the past.
- It prioritizes improving target results, not replicating previous outcomes.
- Prescriptive analytics aims to establish how, why and to what extent variables influence a certain outcome (the ultimate).
Accurate Predictions without Explanations
- Accurate predictions are valuable but limited without explanations. Managers are unlikely to trust models where they don't understand the underlying logic.
Explainable AI (XAI)
- Explainable AI (XAI) provides meaningful explanations about how models make decisions and why they make these decisions.
- XAI is critical to understand how the model functions, build trust, and understand relationships between model outputs and the various underlying input variables.
Stakeholders of XAI
- Stakeholders include managers, users, developers, and external regulators who are all interested in XAI in different ways.
- Their different goals include algorithmic transparency (developers), realistic model representation (managers/users), ethical responsibility (all), and the ability to take prescriptive actionable steps (all).
Primary Goals of Stakeholders of XAI
- Algorithmic transparency
- Realistic representation
- Ethical responsibility
- Prescriptive actionability:
XAI for Algorithmic Transparency
A high level explanation of a model's functioning without diving into intricate technical details is a key feature for understanding model outputs in human-understandable terms.
XAI for Realistic Representation
- XAI explains how an AI model reflects real-world scenarios
- Models must be reliable, trustworthy, and consistently applicable to other contexts.
- Domain experts verify correspondence between model outputs and real-world data.
XAI for Ethical Responsibility
- XAI aims to align AI with human values such as fairness and ethical behavior.
- XAI helps identify biased data in training models.
- XAI considers the tradeoff between model accuracy and ethical behavior.
XAI for Prescriptive Actionability
- XAI clarifies how AI output can inform actionable human decisions.
- XAI emphasizes the identification of cause and effect relationships in model results.
- XAI helps with interactive simulations to observe and model different scenarios.
Relationships among Stakeholders' Goals for XAI
- Relationships among the stakeholders (developers, users and regulators) are highlighted graphically.
Accumulated Local Effects (ALE) Plots
- ALE plots show the relationship between factors (y values) and the effects of variables (x values) on the predictions.
- Median values depict minimal influence, while plots further away from the line indicate strong effects.
Actionable Explanation Process
- Methodology and analysis steps used for deriving actionable insights
Relevance of Concepts
- Ultimate (target): This is the most important factor.
- Relevant concepts: Can be manipulated positively to achieve the ultimate outcome.
- Not relevant concepts: Do not affect the ultimate outcome.
Controllability of Concepts
- Extent to which managers can change variable values
- High control: The concept value is greatly influenced by managers.
- Low control: Concept values can be influenced by managers but are affected by other factors.
- No control: Managers have no influence over concept values.
Summary
- Descriptive, predictive, and prescriptive analytics offer valuable insights.
- Explainable AI (XAI) enables managers to understand and react to AI model predictions proactively.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the concepts of Prescriptive Analytics and Explainable AI in a business context with insights from Chitu Okoli, a Professor at SKEMA Business School. This quiz covers the stages of data analytics, contrasting Conscientious Commerce with Pure Money Commerce, and the importance of data visualization.
