Project Overview
This project explores the trends of the Healthcare industry using Gaussian Process Regression which is very useful in machine learning. This process comprises several stages beginning with data loading followed by data preprocessing, where timestamps and frequencies are set to enable time-series data. Patterns of the data are then visualized to analyze how they relate to trends in the data and for recognition of inherent features.
Since the data is non-stationary, different methods are used to prepare the data set for modeling. In this regard, a kernel is defined regarding the Gaussian process modeling period to address the varying periodic and nonlinear trends present in the data. The model is built on different data and performance metrics such as R², MAE and RMSE. Which helps to ensure the model’s efficiency is used in the model evaluation. The results of the forecasts are plotted with the confidence intervals indicating the range which has a risk of variation.
One of the project's most important elements is how the predictions are transformed back to the original scale at the end after differencing has been done to make the findings relevant. This allows the reader to appreciate the considerations for residual analysis and error estimation better and allows this project to solve practical issues in time-series forecasting. It is the ideal combination of data science and machine learning for people who consider themselves ready for a different type of challenge!
Prerequisites
Before commencing this project, ensure that you have the following skills and tools:
- Familiarity with Python and the libraries Pandas, NumPy, and Matplotlib.
- Knowledge of machine learning including regression models and time series analysis.
- Familiarity with Gaussian Processes and kernels
Approach
The process starts with the loading and preprocessing of the data in which timestamps are created and time series forecasting is done with a monthly frequency for the compatibility of time series. The next step is to analyze the trends embedded in the Healthcare data through the application of line and density plots in the search and identification of patterns and distributions. To solve the problem of non-stationarity, the time series data is different, given that the time series modeling is based entirely on the assumption of constant mean and variance. Then, a kernel is built for Gaussian Process Regressor which accounts for both periodicity and non-linear factors. The model is fit on the differenced data, and forecasts are made for both within-sample and out-of-sample data, including prediction intervals for the forecasts. Lastly, the differences are scaled back to the actual scale for the predictions, allowing proper assessment of the actual values. In the entire process, other metrics such as R², MAE and RMSE, as well as residual analysis, are also computed and done to assess the performance of the model.
Workflow and Methodology
- Data Loading: Load the dataset available at the given path for analysis.
- Data Preprocessing: Transform time to time, determine the seasonality to be months, and arrange the data for time series analysis.
- Data Visualization: Draw density plots and QQ plots to examine the relationships and character of data.
- Stationarity Handling: Apply the differencing methods to make the data stationary so that the model fits well.
- Model Design: Create a specialized Gaussian Process kernel that can capture the periodic and non-linear behavior present in the data.
- Model Training: Fit the Gaussian Process Regressor to the training dataset that has been processed for this purpose.
- Predictions and Uncertainty: Generate the predictions for both training and test sets along with appropriate confidence distribution to indicate uncertainty.
- Reverting Differenced Data: Carry out inverse transformation for the prediction to enable effective comparison of the predictions and the actual data.
- Model Evaluation: Determine the effectiveness of the model using evaluation approaches like R², MAE and RMSE, also do residuals analysis.
Data Collection and Preparation
Data Collection:
In this project, we collected the dataset from a public repository. If you are looking to work on a real-world problem, you can get these kinds of datasets from publicly available repositories such as Kaggle, UCI Machine Learning Repository, or company-specific data. We will provide the dataset in this project so that you can work on the same dataset.
Data Preparation Workflow:
- Import the dataset into DataFrame, changing the month column to timestamp.
- Set the index as the month column and make sure to have the monthly frequency.
- For non-stationary data, apply differencing.
- Modeling would then split the prepared data into the training and test sets.