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The relationship between Curse of Dimensionality and Degrees of Freedom

Statisticians/Data scientists often remark “Don’t add more variables, you won’t have enough degrees of freedom” What does that mean ? Lets take an example of Multi linear regression When building a multi linear regression model, adding more independent variables into the model reduces the degrees of freedom. This is also related to the “curse of […]

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Why Linear Regression is not all about predictions

Often I come across posts and comments from people where they make claims like ‘Linear regression is all about predictions’. Well they are wrong but I don’t quite blame them. Thanks to the machine learning take over of statistical nomenclatures, any prediction task is now labelled as ‘Regression task’ !! This is of course two

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Explaining the ‘Hourglass’ shape of Confidence Interval

Couple of weeks back I wrote a post on “Why we report both confidence Interval and Prediction Interval in our MMM models.” If one were to notice the shape of the confidence Interval, one would notice that it is in the shape of ‘hourglass’ or ‘sand clock’. Now why is that? Well, the answer again

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What the word ‘confidence’ in Confidence Interval Signifies

A lot of people switch to Bayesian methods not because it is better than Frequentist ones, but mainly because they find it hard to wrap their heads around Frequentist concepts. One such concept is Confidence Interval. One of the common misconception people have wrt to CI is that “it is the range in which the

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Market Mix Modeling 101 — Part 2 (Contribution Charts)

In this article, I would like to explain — How to interpret Contribution charts and what are the common pitfalls to avoid. So, what is a Contribution Chart? Contribution Chart is a visual way of representing what marketing inputs drive sales and how much is the impact of each marketing input. It always helps to ease the

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