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fridental | 2 years ago
In Bayesian approach, you start with some distribution that is a wild guess and doesn't even need to base on any knowledge besides of the basics how money work and that unemployment cannot be 0% or 100%. Each data point will refine your distribution until at some dataset size, it will converge to something estimating the reality.
You might want to watch an amazingly helpful introduction by Richard McElreath here https://www.youtube.com/watch?v=guTdrfycW2Q
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