A small however necessary distinction that it is best to know
In lots of information science-related duties, we need to understand how sure we’re concerning the outcome. Realizing how a lot we are able to belief a outcome helps us to make higher choices.
As soon as we now have quantified the extent of uncertainty that comes with a outcome we are able to use it for:
- situation planning to judge a best-case and worst-case situation
- danger 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 have a look at a easy instance. We need to estimate the imply value of a 300-square-meter home in Germany. Amassing the info for all 300-square-meter homes is just not viable. As an alternative, we’ll calculate the imply value primarily based on a consultant subset.