to edit Master text styles Evaluating Multiple Models

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hird level
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Lesson #9

Evaluating Multiple Model

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 to edit Master text styles Evaluating Multiple Models
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hird level
Fourth level
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Comparing Models
• To find which model is best, need to check against
multiple models
• Use the model statistics to compare accuracy and
significance between different models
• By selecting more accurate/ significant model, we
can have better insight and forecasts

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 to edit Master text styles Evaluating Multiple Models
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hird level
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Fifth level
Accuracy / Error
• SSE
– By comparing the sum of squared errors, can
identify which has the lower value of errors
• RMSE
– By comparing the root mean square error, can
identify which has the lower value of the average
error
• MAPE
– By comparing the mean average percent error, can
identify which has the lower value of the average
percent error
• R2; Adjusted R2
– By comparing the R2; Adjusted R2, can identify
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 to edit Master text styles Evaluating Multiple Models
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hird level
Fourth level
Fifth level
Statistical Significance
• F-Test
– By comparing the F-Test values, can identify which
has a higher proportion between explained and
unexplained errors of model
• P-Value F-Test
– By comparing the F-Test P-Values, can identify
which has a higher level of significance

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