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How do you measure predictive power?
To gauge the predictive capability of the model, we could use it to predict the energy use of building and compare those predictions against the actual energy use. The statistical measure that allows us to quantify this comparison is the Coefficient of Variation of Root-Mean Squared Error, or CV(RMSE).
What is the general equation for a multiple regression with two predictors?
analysis using X1 and X2 as predictors of Y provides additional information about three- variable research situations. In Chapter 9, a two-dimensional graph was used to diagram the scatter plot of Y values for each value of X. The regression prediction equation Y′ = b0 + bX corresponded to a line on this graph.
What does it mean to say a statement has predictive power?
The predictive power of a scientific theory refers to its ability to generate testable predictions. Theories with strong predictive power are highly valued, because the predictions can often encourage the falsification of the theory.
How to assess a regression’s predictive power for energy?
To gauge the predictive capability of the model, we could use it to predict the energy use of building and compare those predictions against the actual energy use. The statistical measure that allows us to quantify this comparison is the Coefficient of Variation of Root-Mean Squared Error, or CV (RMSE).
What happens when a statistical model has no predictive power?
If a model has no predictive power, i.e. no ability to correctly anticipate unseen data, then fundamentally the model is not representing the underlying statistical process being studied. If this is so, then any qualitative inferences drawn from said model can not be confidently generalized to inferences about the underlying process.
Which is more important explanatory power or predictive power?
And, most important the model’s explanatory power could be very well supported by economic theory (Hyman Minsky’s credit cycles associated with home prices, etc.). But, when you test this model using Hold Out sample it may not perform that well. It may not be predictive.
Is there a way to calculate the predictive power score?
First of all, there is not the one and only way to calculate the predictive power score. In fact, there are many possible ways to calculate a score that satisfies the requirements mentioned before. So, let’s rather think of the predictive power score as a framework for a family of scores.