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| 1 |
+
# π¦ Bank Customer Churn Prediction using Artificial Neural Network (ANN)
|
| 2 |
+
|
| 3 |
+
## Overview
|
| 4 |
+
|
| 5 |
+
This project is an AI-powered **Bank Customer Churn Prediction System** developed using **Deep Learning (Artificial Neural Networks)**. The application predicts whether a customer is likely to leave the bank based on their personal and financial information.
|
| 6 |
+
|
| 7 |
+
The model is deployed using **Streamlit** and can be easily hosted on **Hugging Face Spaces** for public access.
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| 8 |
+
|
| 9 |
+
---
|
| 10 |
+
|
| 11 |
+
## Features
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| 12 |
+
|
| 13 |
+
* Deep Learning-based customer churn prediction
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| 14 |
+
* Interactive Streamlit web interface
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| 15 |
+
* Real-time predictions
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| 16 |
+
* Standardized input preprocessing using StandardScaler
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| 17 |
+
* Probability score for each prediction
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| 18 |
+
* Clean and user-friendly interface
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| 19 |
+
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| 20 |
+
---
|
| 21 |
+
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| 22 |
+
## Dataset
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| 23 |
+
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| 24 |
+
The project uses the **Bank Customer Churn Dataset**.
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| 25 |
+
|
| 26 |
+
### Input Features
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| 27 |
+
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| 28 |
+
| Feature | Description |
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| 29 |
+
| --------------- | ---------------------------------------- |
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| 30 |
+
| CreditScore | Customer's credit score |
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| 31 |
+
| Gender | Male or Female |
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| 32 |
+
| Age | Customer age |
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| 33 |
+
| Tenure | Number of years with the bank |
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| 34 |
+
| Balance | Current account balance |
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| 35 |
+
| NumOfProducts | Number of bank products owned |
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| 36 |
+
| HasCrCard | Whether the customer has a credit card |
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| 37 |
+
| IsActiveMember | Whether the customer is an active member |
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| 38 |
+
| EstimatedSalary | Estimated annual salary |
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| 39 |
+
|
| 40 |
+
### Target Variable
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| 41 |
+
|
| 42 |
+
| Target | Meaning |
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| 43 |
+
| ------ | ----------------------- |
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| 44 |
+
| 0 | Customer Stays |
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| 45 |
+
| 1 | Customer Leaves (Churn) |
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| 46 |
+
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| 47 |
+
---
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| 48 |
+
|
| 49 |
+
## Technologies Used
|
| 50 |
+
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| 51 |
+
* Python
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| 52 |
+
* TensorFlow / Keras
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| 53 |
+
* NumPy
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| 54 |
+
* Pandas
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| 55 |
+
* Scikit-learn
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| 56 |
+
* Joblib
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| 57 |
+
* Streamlit
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| 58 |
+
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| 59 |
+
---
|
| 60 |
+
|
| 61 |
+
## Deep Learning Architecture
|
| 62 |
+
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| 63 |
+
* Input Layer: **9 Features**
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| 64 |
+
* Hidden Layer 1: Dense Layer (ReLU)
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| 65 |
+
* Hidden Layer 2: Dense Layer (ReLU)
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| 66 |
+
* Output Layer: Dense Layer (Sigmoid)
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| 67 |
+
|
| 68 |
+
### Activation Functions
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| 69 |
+
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| 70 |
+
* ReLU
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| 71 |
+
* Sigmoid
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| 72 |
+
|
| 73 |
+
### Loss Function
|
| 74 |
+
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| 75 |
+
Binary Crossentropy
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| 76 |
+
|
| 77 |
+
### Optimizer
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| 78 |
+
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| 79 |
+
Adam Optimizer
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| 80 |
+
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| 81 |
+
### Evaluation Metric
|
| 82 |
+
|
| 83 |
+
Accuracy
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| 84 |
+
|
| 85 |
+
---
|
| 86 |
+
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| 87 |
+
## Data Preprocessing
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| 88 |
+
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| 89 |
+
The following preprocessing steps were applied before training:
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| 90 |
+
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| 91 |
+
* Removed unnecessary columns
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| 92 |
+
* Encoded Gender
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| 93 |
+
* Feature Scaling using StandardScaler
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| 94 |
+
* Train-Test Split
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| 95 |
+
* Normalized numerical features
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| 96 |
+
|
| 97 |
+
The trained StandardScaler is saved as:
|
| 98 |
+
|
| 99 |
+
```
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| 100 |
+
scaler.pkl
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| 101 |
+
```
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| 102 |
+
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| 103 |
+
to ensure identical preprocessing during deployment.
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| 104 |
+
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| 105 |
+
---
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| 106 |
+
|
| 107 |
+
## Model Files
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| 108 |
+
|
| 109 |
+
```
|
| 110 |
+
ann_model.h5
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| 111 |
+
```
|
| 112 |
+
|
| 113 |
+
Trained Artificial Neural Network model.
|
| 114 |
+
|
| 115 |
+
```
|
| 116 |
+
scaler.pkl
|
| 117 |
+
```
|
| 118 |
+
|
| 119 |
+
Saved StandardScaler used during training.
|
| 120 |
+
|
| 121 |
+
```
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| 122 |
+
app.py
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| 123 |
+
```
|
| 124 |
+
|
| 125 |
+
Streamlit application.
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| 126 |
+
|
| 127 |
+
---
|
| 128 |
+
|
| 129 |
+
## Project Structure
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| 130 |
+
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| 131 |
+
```
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| 132 |
+
Bank-Customer-Churn-Prediction/
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| 133 |
+
β
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| 134 |
+
βββ app.py
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| 135 |
+
βββ ann_model.h5
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| 136 |
+
βββ scaler.pkl
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| 137 |
+
βββ requirements.txt
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| 138 |
+
βββ README.md
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| 139 |
+
βββ dataset.csv
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| 140 |
+
```
|
| 141 |
+
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| 142 |
+
---
|
| 143 |
+
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| 144 |
+
## Installation
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| 145 |
+
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| 146 |
+
Clone the repository
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| 147 |
+
|
| 148 |
+
```bash
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| 149 |
+
git clone <repository-url>
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| 150 |
+
```
|
| 151 |
+
|
| 152 |
+
Move into the project
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| 153 |
+
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| 154 |
+
```bash
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| 155 |
+
cd Bank-Customer-Churn-Prediction
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| 156 |
+
```
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| 157 |
+
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| 158 |
+
Create Virtual Environment
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| 159 |
+
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| 160 |
+
```bash
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| 161 |
+
python -m venv venv
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| 162 |
+
```
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| 163 |
+
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| 164 |
+
Activate Virtual Environment
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| 165 |
+
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| 166 |
+
### Windows
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| 167 |
+
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| 168 |
+
```bash
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| 169 |
+
venv\Scripts\activate
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| 170 |
+
```
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| 171 |
+
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| 172 |
+
### Linux / macOS
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| 173 |
+
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| 174 |
+
```bash
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| 175 |
+
source venv/bin/activate
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| 176 |
+
```
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| 177 |
+
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| 178 |
+
Install dependencies
|
| 179 |
+
|
| 180 |
+
```bash
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| 181 |
+
pip install -r requirements.txt
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| 182 |
+
```
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| 183 |
+
|
| 184 |
+
---
|
| 185 |
+
|
| 186 |
+
## Run the Application
|
| 187 |
+
|
| 188 |
+
```bash
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| 189 |
+
streamlit run app.py
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| 190 |
+
```
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| 191 |
+
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| 192 |
+
---
|
| 193 |
+
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| 194 |
+
## How the Prediction Works
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| 195 |
+
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| 196 |
+
1. User enters customer information.
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| 197 |
+
2. Input data is converted into numerical format.
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| 198 |
+
3. Features are scaled using the saved StandardScaler.
|
| 199 |
+
4. The trained ANN predicts the probability of customer churn.
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| 200 |
+
5. If the probability is greater than **0.5**, the customer is predicted to leave the bank; otherwise, the customer is predicted to stay.
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| 201 |
+
|
| 202 |
+
---
|
| 203 |
+
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| 204 |
+
## Example Prediction
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| 205 |
+
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| 206 |
+
### Input
|
| 207 |
+
|
| 208 |
+
```
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| 209 |
+
Credit Score: 619
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| 210 |
+
Gender: Female
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| 211 |
+
Age: 42
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| 212 |
+
Tenure: 2
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| 213 |
+
Balance: 0
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| 214 |
+
Products: 1
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| 215 |
+
Credit Card: Yes
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| 216 |
+
Active Member: Yes
|
| 217 |
+
Estimated Salary: 101348.88
|
| 218 |
+
```
|
| 219 |
+
|
| 220 |
+
### Output
|
| 221 |
+
|
| 222 |
+
```
|
| 223 |
+
Prediction Probability: 0.34
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| 224 |
+
|
| 225 |
+
Customer is likely to Stay.
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| 226 |
+
```
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| 227 |
+
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| 228 |
+
---
|
| 229 |
+
|
| 230 |
+
## Requirements
|
| 231 |
+
|
| 232 |
+
```
|
| 233 |
+
streamlit
|
| 234 |
+
tensorflow
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| 235 |
+
numpy
|
| 236 |
+
pandas
|
| 237 |
+
scikit-learn
|
| 238 |
+
joblib
|
| 239 |
+
```
|
| 240 |
+
|
| 241 |
+
---
|
| 242 |
+
|
| 243 |
+
## Future Improvements
|
| 244 |
+
|
| 245 |
+
* Support Geography feature
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| 246 |
+
* Explain predictions using SHAP
|
| 247 |
+
* Interactive analytics dashboard
|
| 248 |
+
* Batch prediction from CSV
|
| 249 |
+
* REST API using FastAPI
|
| 250 |
+
* Docker deployment
|
| 251 |
+
* Cloud deployment on AWS or Azure
|
| 252 |
+
|
| 253 |
+
---
|
| 254 |
+
|
| 255 |
+
## Deployment
|
| 256 |
+
|
| 257 |
+
This project can be deployed on:
|
| 258 |
+
|
| 259 |
+
* Hugging Face Spaces
|
| 260 |
+
* Streamlit Community Cloud
|
| 261 |
+
* Render
|
| 262 |
+
* Railway
|
| 263 |
+
* AWS EC2
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| 264 |
+
* Microsoft Azure
|
| 265 |
+
* Google Cloud Platform
|
| 266 |
+
|
| 267 |
+
---
|
| 268 |
+
|
| 269 |
+
## Author
|
| 270 |
+
|
| 271 |
+
**Sudheer Muthyala**
|
| 272 |
+
|
| 273 |
+
B.Tech β Electronics and Communication Engineering
|
| 274 |
+
|
| 275 |
+
Aspiring Data Scientist | AI & Machine Learning Enthusiast
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| 276 |
+
|
| 277 |
+
---
|
| 278 |
+
|
| 279 |
+
## License
|
| 280 |
+
|
| 281 |
+
This project is intended for educational and portfolio purposes. Feel free to fork, modify, and build upon it while providing appropriate attribution.
|
| 282 |
+
|