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Coursera Machine Learning In Python (Exercise 1)

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I have previously done the Coursera Machine Learning exercises in Matlab. I thought, now that I am starting to get away from Matlab and use Python more, I should re-do the exercises in Python. This is exercise 1.

In [447]:
%matplotlib inline
import matplotlib.pyplot as plt
import numpy as np
import scipy

Part 1: Create an eye matrix. While this is incredibly simple, I want to make sure that I go through each step and provide a resulting document that a novice can follow long and understand what is happening.