Predictive modeling is the process of using a statistical or machine learning model to predict the value of a target variable (e.g. default or no-default) on the basis of a series of predictor variables (e.g. income, house value, outstanding debt, etc.).
Monthly Archives: July 2014
Week #29 – Goodness-of-fit
Goodness-of-fit measures the difference between an observed frequency distribution and a theoretical probability distribution which