Machine Learning Guide

MLG 014 Shallow Algos 3

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Apr 23, 2017
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ANECDOTE

Anomaly Detection in Practice

  • Credit card fraud detection uses anomaly detection systems to identify unusual transactions.
  • Server activity monitoring also applies anomaly detection to spot abnormal system behavior requiring attention.
INSIGHT

Bell Curve and Anomalies

  • The bell curve or Gaussian distribution is fundamental and represents most common data distributions.
  • Outliers on the edges of this curve are anomalies and indicate unusual data points.
INSIGHT

Epsilon Threshold in Anomaly Detection

  • Anomaly detection learns a threshold epsilon to determine sensitivity to outliers.
  • The system is trained mostly on normal data, using rare anomalies to tune detection sensitivity.
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