Recently I was looking for a new good restaurant. Google Maps highlighted me 2 options: restaurant A with 10 reviews all 5 stars and restaurant B with 200 reviews and average rating 4. I tempted to choose restaurant A but the low number of reviews concerned me. On the other…

From a data science perspective Why now? McKinsey estimates that, at the current growth rate, cyberattacks will cause an annual damage of $10.5 trillion by 2025. Already today, according to IBM, an average data breach in US costs $9.5 million. Cybersecurity risks is one of the fastest growing digital industries where the…

5 ways to improve model quality — You cannot get a great physical shape if you only do Abs. Instead, you can appear at the beach much more quickly and with a smile on your face if you create a plan with your fitness coach and follow it diligently. The same thing with machine learning models. Everyone…

Modelling dynamical systems with recurrent neural networks — Some time ago I used a time series forecasting approach based on time inversion beautifully incorporated in a special type of recurrent neural network invented by Dr. Hans-Georg Zimmermann — a world-class deep learning practitioner who led a research of neural networks in application to the industrial & financial problems…

Game theory studies rational agents’ interactions in various environmental settings. Many business problems can be formulated in a game theory fashion, but in order to be able to study them, researches have to narrow the real world complexity by 1) limiting the freedom of agents’ actions and 2) omitting many…

Deriving the formula — When you conduct a bottom-up analysis of a business with customers there is one metric you definitely need to know — Customer Lifetime Value (LTV), i.e. how much profit a customer brings in over a whole period of economic relationship. LTV is a very popular topic of business discussion and…