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Cameron Davidson-Pilon - Bayesian Methods for Hackers

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Cameron Davidson-Pilon Bayesian Methods for Hackers

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Master Bayesian Inference through Practical Examples and ComputationWithout Advanced Mathematical Analysis Bayesian methods of inference are deeply natural and extremely powerful. However, most discussions of Bayesian inference rely on intensely complex mathematical analyses and artificial examples, making it inaccessible to anyone without a strong mathematical background. Now, though, Cameron Davidson-Pilon introduces Bayesian inference from a computational perspective, bridging theory to practicefreeing you to get results using computing power. Bayesian Methods for Hackers illuminates Bayesian inference through probabilistic programming with the powerful PyMC language and the closely related Python tools NumPy, SciPy, and Matplotlib. Using this approach, you can reach effective solutions in small increments, without extensive mathematical intervention. Davidson-Pilon begins by introducing the concepts underlying Bayesian inference, comparing it with other techniques and guiding you through building and training your first Bayesian model. Next, he introduces PyMC through a series of detailed examples and intuitive explanations that have been refined after extensive user feedback. Youll learn how to use the Markov Chain Monte Carlo algorithm, choose appropriate sample sizes and priors, work with loss functions, and apply Bayesian inference in domains ranging from finance to marketing. Once youve mastered these techniques, youll constantly turn to this guide for the working PyMC code you need to jumpstart future projects. Coverage includes Learning the Bayesian state of mind and its practical implications Understanding how computers perform Bayesian inference Using the PyMC Python library to program Bayesian analyses Building and debugging models with PyMC Testing your models goodness of fit Opening the black box of the Markov Chain Monte Carlo algorithm to see how and why it works Leveraging the power of the Law of Large Numbers Mastering key concepts, such as clustering, convergence, autocorrelation, and thinning Using loss functions to measure an estimates weaknesses based on your goals and desired outcomes Selecting appropriate priors and understanding how their influence changes with dataset size Overcoming the exploration versus exploitation dilemma: deciding when pretty good is good enough Using Bayesian inference to improve A/B testing Solving data science problems when only small amounts of data are available

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Bayesian Methods for Hackers

Probabilistic Programming and Bayesian Inference

Cameron Davidson-Pilon

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Library of Congress Cataloging-in-Publication Data

Davidson-Pilon, Cameron.
Bayesian methods for hackers : probabilistic programming and bayesian inference / Cameron Davidson-Pilon.
pages cm
Includes bibliographical references and index.
ISBN 978-0-13-390283-9 (pbk.: alk. paper)
1. Penetration testing (Computer security)Mathematics. 2. Bayesian statistical decision theory.
3. Soft computing. I. Title.
QA76.9.A25D376 2015
006.3dc23
2015017249

Copyright 2016 Cameron Davidson-Pilon

All rights reserved. Printed in the United States of America. This publication is protected by copyright, and permission must be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, 200 Old Tappan Road, Old Tappan, New Jersey 07675, or you may fax your request to (201) 236-3290.

The code throughout and in this book is released under the MIT License.

ISBN-13: 978-0-13-390283-9
ISBN-10: 0-13-390283-8
Text printed in the United States on recycled paper at RR Donnelley in Crawfordsville, Indiana.
First printing, October 2015

This book is dedicated to many important relationships my parents my - photo 2
Picture 3

This book is dedicated to many important relationships: my parents,
my brothers, and my closest friends. Second to them, it is devoted
to the open-source community, whose work we consume every
day without knowing.

Picture 4
Contents
Foreword

Bayesian methods are one of many in a modern data scientists toolkit. They can be used to solve problems in prediction, classification, spam detection, ranking, inference, and many other tasks. However, most of the material out there on Bayesian statistics and inference focuses on the mathematical details while giving little attention to the more pragmatic engineering considerations. Thats why Im very pleased to have this book joining the series, bringing a much needed introduction to Bayesian methods targeted at practitioners.

Camerons knowledge of the topic and his focus on tying things back to tangible examples make this book a great introduction for data scientists or regular programmers looking to learn about Bayesian methods. This book is filled with examples, figures, and working Python code that make it easy to get started solving actual problems. If youre new to data science, Bayesian methods, or new to data science with Python, this book will be an invaluable resource to get you started.

Paul Dix
Series Editor

Preface

The Bayesian method is the natural approach to inference, yet it is hidden from readers behind chapters of slow, mathematical analysis. The typical text on Bayesian inference involves two to three chapters on probability theory, then enters into what Bayesian inference is. Unfortunately, due to the mathematical intractability of most Bayesian models, the reader is only shown simple, artificial examples. This can leave the user with a So what? feeling about Bayesian inference. In fact, this was my own prior opinion.

After some recent success of Bayesian methods in machine-learning competitions, I decided to investigate the subject again. Even with my mathematical background, it took me three straight days of reading examples and trying to put the pieces together to understand the methods. There was simply not enough literature bridging theory to practice. The problem with my misunderstanding was the disconnect between Bayesian mathematics and probabilistic programming. That being said, I suffered then so the reader would not have to now. This book attempts to bridge the gap.

If Bayesian inference is the destination, then mathematical analysis is a particular path toward it. On the other hand, computing power is cheap enough that we can afford to take an alternate route via probabilistic programming. The latter path is much more useful, as it denies the necessity of mathematical intervention at each step; that is, we remove often intractable mathematical analysis as a prerequisite to Bayesian inference. Simply put, this latter computational path proceeds via small, intermediate jumps from beginning to end, whereas the first path proceeds by enormous leaps, often landing far away from our target. Furthermore, without a strong mathematical background, the analysis required by the first path cannot even take place.

Bayesian Methods for Hackers is designed as an introduction to Bayesian inference from a computational/understanding first, and mathematics second, point of view. Of course, as an introductory book, we can only leave it at that: an introductory book. For the mathematically trained, the curiosity this text generates may be cured by other texts designed with mathematical analysis in mind. For the enthusiast with a less mathematical background, or one who is not interested in the mathematics but simply the practice of Bayesian methods, this text should be sufficient and entertaining.

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