What is Machine Learning? What is Cluster Analysis and Dimensionality Reduction?

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I understand quite a bit about technology but I never understood how machine learning works.

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Machine Learning is about generalizing from a set of examples. For example, you have some superhero figures and some toy cars, and when you see a new toy, you can decide if it looks more like a superhero or a car. Machine learning is when a computer can do this.

Cluster analysis – grouping all your toys into boxes, where each box will contain similar toys. Like when you decide to put superheroes into box 1, cars into box 2 and lego particles into box 3 without your parents giving specific orders what goes where.

Dimensionality Reductiоn – selecting or constructing a small number of features that can reasonably describe objects from a diverse set. Like you have a large heap of toys and you notice that a toy’s size, shape and prevailing color define what games can be played with this toys, other properties being less relevant than that three.

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