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Machine Learning Documentation Initiative Workshop on the Modernisation of Statistical Production Topic iii) Innovation in technology and methods driving opportunities for modernisation Kenneth Chu and Claude Poirier Geneva, Switzerland, 15-17 April 2015 What is Machine Learning (ML) Application of artificial intelligence in which algorithms use available information to process (or assist the processing of) statistical data Coding Editing Linkage Collection • 20 applications were reported. 2 Statistics Canada • Statistique Canada 2017-05-22 Why should we consider ML ?  Relatively new discipline of computer science • No needs for probabilistic models • Less stringent for the BIG Data era  NSOs should all explore the use of ML 3 Statistics Canada • Statistique Canada 2017-05-22 Classes of ML SUPERVISED ML  Ex.1: Logistic regression [statistics] • Training data: Binary response (0:1) and predictors • Maximum likelihood leads to model parameters • Resulting model is used to predict responses  Ex.2: Support Vector Machines [non-statistics] • Training data: Binary response (0:1) and predictors • Hyperplanes in the space of predictors separate responses • SVM optimisation problem comes from geometry  Decision trees, neural networks, Bayesian networks 4 Statistics Canada • Statistique Canada 2017-05-22 Classes of ML UNSUPERVISED ML  Ex.1: Principal Component Analysis [statistics] • PCA summarizes a set of data by finding orthogonal sub-spaces that represent most of the variation • There is no longer a response variable in the setting  Ex.2: Cluster Analysis [non-statistics] • CA seeks to determine grouping in given data • Again, there are no response variables in the setting 5 Statistics Canada • Statistique Canada 2017-05-22 Applications  Automated Coding • Bayesian classifier (Germany): Occupation coding • CASCOT (United Kingdom): Occupation coding • Indexing utility (Ireland): Individual consumption • SVM (New Zealand): Occupation and Qualification 6 Statistics Canada • Statistique Canada 2017-05-22 Applications  Data Editing • Bayesian Networks (Eurostat): Voting intentions • Classification Trees (Portugal): Foreign trade data • Cluster Analysis (USA): Census of agriculture • CART (New Zealand): Census of population • Random Forests (New Zealand): Donor imputation • Association Analysis (New Zealand): Edit rules 7 Statistics Canada • Statistique Canada 2017-05-22 Applications  Record Linkage • Neither like coding, nor editing • Quality of linkages depends on pre-processing more than matching • No applications of Machine Learning in official statistics were listed 8 Statistics Canada • Statistique Canada 2017-05-22 Applications  Other areas – Data collection • Classification Tree (USA): Non-response prediction • Classification Tree (USA): Reporting errors • Naïve Bayes text mining (Italy): Web scraping • K-nearest neighbours (Hungary): Tax audit • Image Processing (Canada): Remote sensing 9 Statistics Canada • Statistique Canada 2017-05-22 Concluding remarks  Several machine learning applications  Gap in the area of record linkage  Attention required outside statistical paradigms  Next: Applying Machine Learning on BIG Data • Will this be possible only on a case-by-case basis? 10 Statistics Canada • Statistique Canada 2017-05-22 Thank you Merci  For more information, please contact: Pour plus d’information, veuillez contacter : Claude.Poirier@statcan.gc.ca 11 Statistics Canada • Statistique Canada 2017-05-22