A small however essential distinction that you must know
In lots of knowledge science-related duties, we need to know the way sure we’re in regards to the end result. Understanding how a lot we will belief a end result helps us to make higher choices.
As soon as we’ve got quantified the extent of uncertainty that comes with a end result we will use it for:
- state of affairs planning to judge a best-case and worst-case state of affairs
- threat evaluation to judge the affect on choices
- mannequin analysis to match totally different fashions and mannequin efficiency
- communication with decision-makers about how a lot they need to belief the outcomes
The place does the uncertainty come from?
Let’s take a look at a easy instance. We need to estimate the imply value of a 300-square-meter home in Germany. Accumulating the info for all 300-square-meter homes isn’t viable. As an alternative, we are going to calculate the imply value primarily based on a consultant subset.
