ann.py

# coding: utf-8

# # This is a simple ANN which predicts if a customer will leave the bank or not.

# ## Data loading
# We will use Pandas to load the data in csv

# In[1]:

import pandas as pd
dataset = pd.read_csv("data.csv")

#We are taking only the independent variables which impact the dependent variable (i.e. if the customer leaves the banks)
X = dataset.iloc[:,3:13].values

y = dataset.iloc[:,13].values


# ## Encoding
# Now, we need to encode categorical data, as in mathematical equations we need to use only numerical values.
# We encode all the independent variables which are non numeric.
# In our current case, we need to encode ```Geography``` and ```Gender```

# In[3]:

# Encoding categorical values
from sklearn.preprocessing import LabelEncoder, OneHotEncoder
labelencoder_X_1 = LabelEncoder()
X[:,1]= labelencoder_X_1.fit_transform(X[:,1])
labelencoder_X_2 = LabelEncoder()
X[:,2]= labelencoder_X_2.fit_transform(X[:,2])


# We need to include dummy variables to avoid un-necessary preference to any encoded value as all the variables are of same importance.

# In[4]:

onehotencoder = OneHotEncoder(categorical_features=[1])
X = onehotencoder.fit_transform(X).toarray()


# ### Avoid dummy variable trap
# We need to avoid dummy variable trap. More info on dummy variable trap is [here](http://www.algosome.com/articles/dummy-variable-trap-regression.html)

# In[5]:

#Done to avoid Dummy variable trap. Reducing dummy variable by one
X = X[:,1:]


# ## Data split
# Splitting the data in training and test set

# In[6]:

#Splitting the dataset into the training and test set
from sklearn.model_selection import train_test_split
X_train, X_test, y_train,y_test = train_test_split(X,y,test_size=0.2,random_state=0)


# ## Feature Scaling
# Feature scaling is done to avoid dominance of one independent variable on others.
# We need to fit and transform the training dataset.
# But test dataset is only transformmed.

# In[7]:

from sklearn.preprocessing import StandardScaler
from sklearn.externals import joblib


sc=StandardScaler()
X_train = sc.fit_transform(X_train)
X_test = sc.transform(X_test)


# ## Artificial Neural Network
# Now we will create ANN with following approach
# - Randomly initialise the weights to small numbers close to 0 (but not 0)
# - Input the first observation of your dataset in the input layer, each feature in one input node.
# - Forward-Propagation from left to right, the neurons are activated in a way that the impact of each neuron's activation is limited by the weights. Propagate the activations until getting the predicted result y.
# - Compare the predicted result to the actual result. Measure the generated error.
# - Back-Progpagation: from right to left, the error is back-propagated so that the weights are updated accordingly.
# - Repeat Steps 1-5 till whole data set is exhausted.

# In[9]:

#ANN 
import keras
from keras.models import Sequential
from keras.layers import Dense
from keras.layers import Dropout
classifier = Sequential()

#Adding the input layer
#Number of nodes in hiddedn layer = average of number of nodes in input layer and number of nodes in output layer
#It is recommended to use RELU for hidden layers and Sigmoid (for two categories)/Softmax (for more than two categories) for output layer
classifier.add(Dense(activation="relu", input_dim=11, units=6, kernel_initializer="uniform"))
classifier.add(Dropout(rate=0.1))
#Adding second hidden layer 
classifier.add(Dense(activation="relu", units=6, kernel_initializer="uniform"))
#Adding Dropout to avoid overfitting
classifier.add(Dropout(rate=0.1))
#Adding output layer 
classifier.add(Dense(activation="sigmoid", units=1, kernel_initializer="uniform"))

# Compiling the ANN
# If dependent variable is binary then loss = binary_crossentropy else loss = categorical_crossentropy
classifier.compile(optimizer='adam',loss='binary_crossentropy',metrics=['accuracy'])
classifier.fit(X_train,y_train,batch_size=10,epochs=100)

# Saving model
classifier.save("model.h5");
joblib.dump(sc, 'scaler.pkl') 




y_pred = classifier.predict(X_test)
y_pred = (y_pred>0.5)


# In[14]:

import numpy as np
new_prediction = classifier.predict(sc.transform(np.array([[0.,0,600,1,40,3,60000,2,1,1,50000]])))
new_prediction=(new_prediction>0.5)
print("The customer will leave" if new_prediction else"The customer will not leave")


# This is a simple ANN to determine if a customer will leave the bank or not.