Opening the machine learning black box

Andreas Joseph

Machine learning models are at the forefront of current advances in artificial intelligence (AI) and automation. However, they are routinely, and rightly, criticised for being black boxes. In this post, I present a novel approach to evaluate machine learning models similar to a linear regression – one of the most transparent and widely used modelling techniques. The framework rests on an analogy between game theory and statistical models. A machine learning model is rewritten as a regression model using its Shapley values, a payoff concept for cooperative games. The model output can then be conveniently communicated, eg using a standard regression table. This strengthens the case for the use of machine learning to inform decisions where accuracy and transparency are crucial.

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What can we discover from average mortgage rate stats?

Hannah Phaup.

What’s the point of an ‘average’ mortgage rate, and why does it matter to the Bank of England?  Mortgage rates often hit the news with headline-grabbing low rates, or rate increases for certain mortgage products.  An average mortgage rate strips away the extremes, and as I will outline can represent both what is available to the average borrower, and what is experienced.

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