Module 3 Review & Cheat Sheet

1. Key Takeaways

  • Bayes’ Theorem: The mathematical engine for updating beliefs with new evidence. It is the foundation of Generative AI.
  • The Big 3 Distributions:
    • Bernoulli: Binary outcomes (Logistic Regression).
    • Gaussian: The sum of many random things (Weights, Errors).
    • Poisson: Counts over time (Traffic).
  • Hypothesis Testing: A framework to distinguish Signal from Noise. Beware of P-Hacking (False Positives from multiple comparisons).
  • Naive Bayes: A simple yet powerful classifier that uses the “Independence Assumption” and “Log-Sum-Exp” trick to handle text at scale.

2. Cheat Sheet

Concept Formula / Note
Conditional Prob P(A|B) = P(A ∩ B) / P(B)
Bayes’ Theorem P(A|B) = [P(B|A)P(A)] / P(B)
Independence P(A ∩ B) = P(A)P(B)
Expectation E[X] = ∑ x · P(x)
Variance Var(X) = E[(X-&mu;)<sup>2</sup>]
Covariance Cov(X,Y) = E[(X-&mu;<sub>x</sub>)(Y-&mu;<sub>y</sub>)]
Correlation &rho; = Cov(X,Y) / (&sigma;<sub>X</sub> &sigma;<sub>Y</sub>)
Normal Dist N(&mu;, &sigma;<sup>2</sup>)
CLT Sum of i.i.d. variables → Gaussian
Log-Sum-Exp log(&prod; p<sub>i</sub>) = &sum; log(p<sub>i</sub>)
Laplace Smoothing (count + 1) / (total + V)

3. Interview Gauntlet

Q1: Explain P-Value to a Product Manager.

“It’s the probability that the improvement we saw (e.g., +2% conversion) happened purely by luck. A low P-value means it’s likely a real improvement.”

Q2: Why do we use Log-Probabilities in Naive Bayes?

“To prevent arithmetic underflow. Multiplying many small probabilities results in zero. Logs turn multiplication into addition, which is numerically stable.”

Q3: What happens if a word is missing in Naive Bayes?

“The probability becomes zero, crashing the model. We use Laplace Smoothing (adding 1 to counts) to handle this.”

Q4: What is the difference between Generative and Discriminative models?

“Generative models (Naive Bayes) learn the joint probability P(X,Y)—how the data is generated. Discriminative models (Logistic Regression) learn the conditional probability P(Y|X)—the boundary between classes.”


4. Interactive Flashcards

Test your knowledge. Click a card to flip it. Use Left/Right Arrows to navigate.

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