Measuring Model Accuracy

Fabio Veronesi shows several methods of testing model accuracy:

Mean Squared Deviation or Mean Squared Error

This is simply the numerator of the previous equation, but it is not used often. The issue with both the RMSE and the MSE is that since they square the residuals they tend to be more affected by large residuals. This means that even if our model explains the large majority of the variation in the data very well, with few exceptions; these exceptions will inflate the value of RMSE.

Click through for several calculations.  H/T R-bloggers

Related Posts

Bias Correction In Standard Deviation Estimates

John Mount explains how to perform bias correction and explains why it happens so rarely in practice: The bias in question is falling off at a rate of 1/n (where n is our sample size). So the bias issue loses what little gravity it ever may have ever had when working with big data. Most sources of noise will […]

Read More

Explaining Neural Networks With H2O

Shirin Glander explains some of the concepts behind neural networks using H2O as a guide: Before, when describing the simple perceptron, I said that a result is calculated in a neuron, e.g. by summing up all the incoming data multiplied by weights. However, this has one big disadvantage: such an approach would only enable our neural net […]

Read More

Categories

July 2017
MTWTFSS
« Jun Aug »
 12
3456789
10111213141516
17181920212223
24252627282930
31