# statistics

### Managing imbalanced Data Sets with SMOTE in Python

When working with data sets for machine learning, lots of these data sets and examples we see have approximately the same number of case records for each of the possible predicted values. In this kind of scenario we are trying to perform some kind of classification, where the machine learning model looks to build a model based on the input data set against a target variable. It is this target variable that contains the value to be predicted. In most cases this target variable (or feature) will contain binary values or equivalent in categorical form such as Yes and No, or A and B, etc or may contain a small number of other possible values (e.g. A, B, C, D).

For the classification algorithm to perform optimally and be able to predict the possible value for a new case record, it will need to see enough case records for each of the possible values. What this means, it would be good to have approximately the same number of records for each value (there are many ways to overcome this and these are outside the score of this post). But most data sets, and those that you will encounter in real life work scenarios, are never balanced, as in having a 50-50 split. What we typically encounter might be a 90-10, 98-2, etc type of split. These data sets are said to be imbalanced.

The image above gives examples of two approaches for creating a balanced data set. The first is under-sampling. This involves reducing the class that contains the majority of the case records and reducing it to match the number of case records in the minor class. The problems with this include, the resulting data set is too small to be meaningful, the case records removed could contain important records and scenarios that the model will need to know about.

The second example is creating a balanced data set by increasing the number of records in the minority class. There are a few approaches to creating this. The first approach is to create duplicate records, from the minor class, until such time as the number of case records are approximately the same for each class. This is the simplest approach. The second approach is to create synthetic records that are statistically equivalent of the original data set. A commonly technique used for this is called SMOTE, Synthetic Minority Oversampling Technique. SMOTE uses a nearest neighbors algorithm to generate new and synthetic data we can use for training our model. But one of the issues with SMOTE is that it will not create sample records outside the bounds of the original data set. As you can image this would be very difficult to do.

The following examples will illustrate how to perform Under-Sampling and Over-Sampling (duplication and using SMOTE) in Python using functions from Pandas, Imbalanced-Learn and Sci-Kit Learn libraries.

NOTE: The Imbalanced-Learn library (e.g. SMOTE)requires the data to be in numeric format, as it statistical calculations are performed on these. The python function get_dummies was used as a quick and simple to generate the numeric values. Although this is perhaps not the best method to use in a real project. With the other sampling functions can process data sets with a sting and numeric.

Data Set: Is the Portuaguese Banking data set and is available on the UCI Data Set Repository, and many other sites. Here are some basics with that data set.

import warnings import pandas as pd import numpy as np import matplotlib.pyplot as plt get_ipython().magic('matplotlib inline') bank_file = ".../bank-additional-full.csv" # import dataset df = pd.read_csv(bank_file, sep=';',) # get basic details of df (num records, num features) df.shape

df['y'].value_counts() # dataset is imbalanced with majority of class label as "no".

no 36548 yes 4640 Name: y, dtype: int64

#print bar chart df.y.value_counts().plot(kind='bar', title='Count (target)');

**Example 1a – Down/Under sampling the majority class y=1 (using random sampling)**

count_class_0, count_class_1 = df.y.value_counts() # Divide by class df_class_0 = df[df['y'] == 0] #majority class df_class_1 = df[df['y'] == 1] #minority class # Sample Majority class (y=0, to have same number of records as minority calls (y=1) df_class_0_under = df_class_0.sample(count_class_1) # join the dataframes containing y=1 and y=0 df_test_under = pd.concat([df_class_0_under, df_class_1]) print('Random under-sampling:') print(df_test_under.y.value_counts()) print("Num records = ", df_test_under.shape[0]) df_test_under.y.value_counts().plot(kind='bar', title='Count (target)');

**Example 1b – Down/Under sampling the majority class y=1 using imblearn**

from imblearn.under_sampling import RandomUnderSampler X = df_new.drop('y', axis=1) Y = df_new['y'] rus = RandomUnderSampler(random_state=42, replacement=True) X_rus, Y_rus = rus.fit_resample(X, Y) df_rus = pd.concat([pd.DataFrame(X_rus), pd.DataFrame(Y_rus, columns=['y'])], axis=1) print('imblearn over-sampling:') print(df_rus.y.value_counts()) print("Num records = ", df_rus.shape[0]) df_rus.y.value_counts().plot(kind='bar', title='Count (target)');

*[same results as Example 1a]*

**Example 1c – Down/Under sampling the majority class y=1 using Sci-Kit Learn**

from sklearn.utils import resample print("Original Data distribution") print(df['y'].value_counts()) # Down Sample Majority class down_sample = resample(df[df['y']==0], replace = True, # sample with replacement n_samples = df[df['y']==1].shape[0], # to match minority class random_state=42) # reproducible results # Combine majority class with upsampled minority class train_downsample = pd.concat([df[df['y']==1], down_sample]) # Display new class counts print('Sci-Kit Learn : resample : Down Sampled data set') print(train_downsample['y'].value_counts()) print("Num records = ", train_downsample.shape[0]) train_downsample.y.value_counts().plot(kind='bar', title='Count (target)');

*[same results as Example 1a]*

**Example 2 a – Over sampling the minority call y=0 (using random sampling)**

df_class_1_over = df_class_1.sample(count_class_0, replace=True) df_test_over = pd.concat([df_class_0, df_class_1_over], axis=0) print('Random over-sampling:') print(df_test_over.y.value_counts()) df_test_over.y.value_counts().plot(kind='bar', title='Count (target)');

Random over-sampling: 1 36548 0 36548 Name: y, dtype: int64

**Example 2b – Over sampling the minority call y=0 using SMOTE**

from imblearn.over_sampling import SMOTE print(df_new.y.value_counts()) X = df_new.drop('y', axis=1) Y = df_new['y'] sm = SMOTE(random_state=42) X_res, Y_res = sm.fit_resample(X, Y) df_smote_over = pd.concat([pd.DataFrame(X_res), pd.DataFrame(Y_res, columns=['y'])], axis=1) print('SMOTE over-sampling:') print(df_smote_over.y.value_counts()) df_smote_over.y.value_counts().plot(kind='bar', title='Count (target)');

*[same results as Example 2a]*

**Example 2c – Over sampling the minority call y=0 using Sci-Kit Learn**

from sklearn.utils import resample print("Original Data distribution") print(df['y'].value_counts()) # Upsample minority class train_positive_upsample = resample(df[df['y']==1], replace = True, # sample with replacement n_samples = train_zero.shape[0], # to match majority class random_state=42) # reproducible results # Combine majority class with upsampled minority class train_upsample = pd.concat([train_negative, train_positive_upsample]) # Display new class counts print('Sci-Kit Learn : resample : Up Sampled data set') print(train_upsample['y'].value_counts()) train_upsample.y.value_counts().plot(kind='bar', title='Count (target)');

*[same results as Example 2a]*

### Time Series Forecasting in Oracle – Part 1

Time-series analysis comprises methods for analyzing time series data in order to extract meaningful statistics and other characteristics of the data. In this blog post I’ll introduce what time-series analysis is, the different types of time-series analysis and introduce how you can do this using SQL and PL/SQL in Oracle Database. I’ll have additional blog posts giving more detailed examples of Oracle functions and how they can be used for different time-series data problems.

Time-series forecasting is the use of a model to predict future values based on previously observed/historical values. It is a form of regression analysis with additions to facilitate trends, seasonal effects and various other combinations.

Time-series forecasting is not an exact science but instead consists of a set of statistical tools and techniques that support human judgment and intuition, and only forms part of a solution. It can be used to automate the monitoring and control of data flows and can then indicate certain trends, alerts, rescheduling, etc., as in most business scenarios it is used for predict some future customer demand and/or products or services needs.

Typical application areas of Time-series forecasting include:

- Operations management: forecast of product sales; demand for services
- Marketing: forecast of sales response to advertisement procedures, new promotions etc.
- Finance & Risk management: forecast returns from investments
- Economics: forecast of major economic variables, e.g. GDP, population growth, unemployment rates, inflation; useful for monetary & fiscal policy; budgeting plans & decisions
- Industrial Process Control: forecasts of the quality characteristics of a production process
- Demography: forecast of population; of demographic events (deaths, births, migration); useful for policy planning

When working with time-series data we are looking for a pattern or trend in the data. What we want to achieve is the find a way to model this pattern/trend and to then project this onto our data and into the future. The graphs in the following image illustrate examples of the different kinds of scenarios we want to model.

Most time-series data sets will have one or more of the following components:

*Seasonal*: Regularly occurring, systematic variation in a time series according to the time of year.*Trend*: The tendency of a variable to grow over time, either positively or negatively.*Cycle*: Cyclical patterns in a time series which are generally irregular in depth and duration. Such cycles often correspond to periods of economic expansion or contraction. Also know as the*business cycle.**Irregular**:*The Unexplained variation in a time series.

When approaching time-series problems you will use a combination of visualizations and time-series forecasting methods to examine the data and to build a suitable model. This is where the skills and experience of the data scientist becomes very important.

Oracle provided a algorithm to support time-series analysis in Oracle 18c. This function is called Exponential Smoothing. This algorithm allows for a number of different types of time-series data and patterns, and provides a wide range of statistical measures to support the analysis and predictions, in a similar way to Holt-Winters.

The first parameter for the Exponential Smoothing function is the name of the model to use. Oracle provides a comprehensive list of models and these are listed in the following table.

Check out my other blog posts on performing time-series analysis using the Exponential Smoothing function in Oracle Database. These will give more detailed examples of how the Oracle time-series functions, using the Exponential Smoothing algorithm, can be used for different time-series data problems. I’ll also look at example of the different configurations.