Regulators require financial institutions to estimate counterparty default risks from liquid CDS quotes for the valuation and risk management of OTC derivatives. However, the vast majority of counterparties do not have liquid CDS quotes and need proxy CDS rates. Existing methods cannot account for counterparty-specific default risks; we propose to construct proxy CDS rates by associating to illiquid counterparty liquid CDS Proxy based on Machine Learning Techniques. After testing 156 classifiers from 8 most popular classifier families, we found that some classifiers achieve highly satisfactory accuracy rates. Furthermore, we have rank-ordered the performances and investigated performance variations amongst and within the 8 classifier families. This paper is, to the best of our knowledge, the first systematic study of CDS Proxy construction by Machine Learning techniques, and the first systematic classifier comparison study based entirely on financial market data. Its findings both confirm and contrast existing classifier performance literature. Given the typically highly correlated nature of financial data, we investigated the impact of correlation on classifier performance. The techniques used in this paper should be of interest for financial institutions seeking a CDS Proxy method, and can serve for proxy construction for other financial variables. Some directions for future research are indicated.

The idea of cross-validation is to split the data into N subsets, to put one subset aside, to estimate parameters of the model from the remaining N-1 subsets, and to use the retained subset to estimate the error of the model. Such a process is repeated N times - with each of the N subsets being used as the validation set . Then the values of the errors obtained in such N steps are combined to provide the final estimate of the model error. The cross-validation is used in various classification and prediction procedures, such as regression analysis, discriminant analysis, neural networks and classification and regression trees (CART) . The goal is to improve the quality of the decision that is made from the outcome of the study on the basis of statistical methods, and to ensure that maximum information is obtained from scarce experimental data.

The Monty Hall problem was first featured on the classic game show "Let's make a Deal". In the final segment of the show, contestants were presented with a choice of three different doors. Behind two of the doors would be a goat, and behind the third would be an extravagant prize such as a car. The contestant begins the game by picking one door. The host, Monty Hall, would then open one of the remaining doors.

Tensor networks are efficient representations of high-dimensional tensors which have been very successful for physics and mathematics applications. We demonstrate how algorithms for optimizing such networks can be adapted to supervised learning tasks by using matrix product states (tensor trains) to parameterize models for classifying images. For the MNIST data set we obtain less than 1% test set classification error. We discuss how the tensor network form imparts additional structure to the learned model and suggest a possible generative interpretation.

Text mining (deriving information from text) is a wide field which has gained popularity with the huge text data being generated. Automation of a number of applications like sentiment analysis, document classification, topic classification, text summarization, machine translation, etc has been done using machine learning models. Spam filtering is a beginner's example of document classification task which involves classifying an email as spam or non-spam (a.k.a. Spam box in your Gmail account is the best example of this. So lets get started in building a spam filter on a publicly available mail corpus.

Machine Learning is a vast area of Computer Science that is concerned with designing algorithms which form good models of the world around us (the data coming from the world around us). Within Machine Learning many tasks are - or can be reformulated as - classification tasks. In classification tasks we are trying to produce a model which can give the correlation between the input data and the class each input belongs to. This model is formed with the feature-values of the input-data. For example, the dataset contains datapoints belonging to the classes Apples, Pears and Oranges and based on the features of the datapoints (weight, color, size etc) we are trying to predict the class. We need some amount of training data to train the Classifier, i.e. form a correct model of the data.

Linking human whole-body motion and natural language is of great interest for the generation of semantic representations of observed human behaviors as well as for the generation of robot behaviors based on natural language input. While there has been a large body of research in this area, most approaches that exist today require a symbolic representation of motions (e.g. in the form of motion primitives), which have to be defined a-priori or require complex segmentation algorithms. In contrast, recent advances in the field of neural networks and especially deep learning have demonstrated that sub-symbolic representations that can be learned end-to-end usually outperform more traditional approaches, for applications such as machine translation. In this paper we propose a generative model that learns a bidirectional mapping between human whole-body motion and natural language using deep recurrent neural networks (RNNs) and sequence-to-sequence learning. Our approach does not require any segmentation or manual feature engineering and learns a distributed representation, which is shared for all motions and descriptions. We evaluate our approach on 2,846 human whole-body motions and 6,187 natural language descriptions thereof from the KIT Motion-Language Dataset. Our results clearly demonstrate the effectiveness of the proposed model: We show that our model generates a wide variety of realistic motions only from descriptions thereof in form of a single sentence. Conversely, our model is also capable of generating correct and detailed natural language descriptions from human motions.

And why is it useful for BigData? 29 What is "continuous features binning"? What is a Standard Scaling? 38 Why are statistical distributions important? What is a Bias - Variance tradeoff? What is a training set, a validation set, a test set and a gold set in supervised and unsupervised learning? What is a cross-validation and what is an overfitting?

An important problem in Bayesian networks classifiers (BNC) is to discover relevant variables that can achieve optimal classification performance. We propose a method based on Bayesian inference for estimating and incorporating feature relevance in classification using BNCs. We empirically validate our method on an application to event recognition in natural images using object and scene information.

Interaction between humans and machines, like social robots, requires real time recognition of human actions. Most approaches to this problem wait for the end of the gesture to perform classification. In this paper we present a deep learning approach to online gesture recognition that allows for an estimation of the current gesture since its beginning. Our approach is to modify the existing Temporal Deep Belief Network (TDBN) architecture. The result is a Discriminative Temporal Deep Belief Network (DTDBN) which we apply to the online classification of motion capture streams. We optimize and evaluate our model in comparison with related work.