Supervised learning:
say a kid goes to kinder-garden. here teacher shows him 3 toys-house,ball and car. now teacher gives him 10 toys.
he will classify them in 3 box of house,ball and car based on his previous experience.
so kid was first supervised by teachers for getting right answers for few sets. then he was tested on unknown toys.
Unsupervised learning:
again kindergarten example.A child is given 10 toys. he is told to segment similar ones.
so based on features like shape,size,color,function etc he will try to make 3 groups say A,B,C and group them.
The word Supervise means you are giving supervision/instruction to machine to help it find answers. Once it learns instructions, it can easily predict for new case.
Unsupervised means there is no supervision or instruction how to find answers/labels and machine will use its intelligence to find some pattern in our data. Here it will not make prediction, it will just try to find clusters which has similar data.
