Christian Lorentzen talks diagnostics:
In this post, we show how different use cases require different model diagnostics. In short, we compare (statistical) inference and prediction.
As an example, we use a simple linear model for the Munich rent index dataset, which was kindly provided by the authors of Regression – Models, Methods and Applications 2nd ed. (2021). This dataset contains monthy rents in EUR (
rent) for about 3000 apartments in Munich, Germany, from 1999.
Read on to learn more about this dataset and how the mindset differs if you’re thinking about inference versus prediction.