Setting the Initial Values for Level, Trend, and Seasonality 315
Getting Rolling on the Forecast 319
And Optimize! 324
Please Tell Me We’re Done Now!!! 326
Putting a Prediction Interval around the Forecast 327
Creating a Fan Chart for Effect 331
Wrapping Up 333
9 Outlier Detection: Just Because They’re Odd Doesn’t Mean They’re Unimportant 335
Outliers Are (Bad?) People, Too 335
The Fascinating Case of Hadlum v Hadlum 336
Tukey Fences 337
Applying Tukey Fences in a Spreadsheet 338
The Limitations of This Simple Approach 340
Terrible at Nothing, Bad at Everything 341
Preparing Data for Graphing 342
Creating a Graph 345
Getting the k Nearest Neighbors 347
Graph Outlier Detection Method 1: Just Use the Indegree 348
Graph Outlier Detection Method 2: Getting Nuanced with k-Distance 351
Graph Outlier Detection Method 3: Local Outlier Factors Are Where It’s At 353
Wrapping Up 358
10 Moving from Spreadsheets into R 361
Getting Up and Running with R 362
Some Simple Hand-Jamming 363
Reading Data into R 370
Doing Some Actual Data Science 372
Spherical K-Means on Wine Data in Just a Few Lines 372
Building AI Models on the Pregnancy Data 378
Forecasting in R 385
Looking at Outlier Detection 389
Wrapping Up 394
Conclusion 395
Where Am I? What Just Happened? 395
Before You Go-Go 395
Get to Know the Problem 396
We Need More Translators 397
Beware the Three-Headed Geek-Monster: Tools, Performance, and Mathematical Perfection 397
You Are Not the Most Important Function of Your Organization 400
Get Creative and Keep in Touch! 400
Index 401
DESCRIPTION The book provides nine tutorials on optimization, machine learning, data mining, and forecasting all within the confines of a spreadsheet. Each tutorial uses a real-world problem and the author guides the reader using query’s the reader might ask as how to craft a solution using the correct data science technique. Hosting these nine spreadsheets for download will be necessary so that the reader can work the problems along with the book.
Important topics covered by the book:
Linear and integer programming K-nearest neighbors graphs and clustering Logistic regression Demand forecasting with seasonal adjustments Price sensitivity, revenue optimization, and price-sensitive forecasting Naïve Bayes classification Outlier detection using graphs and Local Outlier Factors Multi-criteria decision analysis