Posts Tagged ‘methodology’

Practical Time Series Forecasting – Know When to Hold ‘em

“The only relevant test of the validity of a hypothesis is comparison of prediction with experience.” ― Milton Friedman, economist Holdout samples are a mainstay of predictive analytics. Set aside a portion of your data (say, 30%). Build your candidate models. Then “internally validate” your models using the holdout sample. More sophisticated methods like cross…

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