The typical usage of this algorithm is for tagging and bagging different news items of interest about a person into various categories (such as friendly versus hostile, lukewarm versus elated, and so on). Another usage in medical billing could be the classification of patient diagnostic into different medical codes used for automated billing and revenue cycle maximization.
One-vs-Rest: As shown in the following figure, this solves an n-label classification problem by binary logistic regression:
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