What It Means to “Overfit” a Model to Your Data
For the longest time I was puzzled by what it means to “over-fit” a model to one’s data. How can a model describe one’s data too perfectly? Aren’t we trying to get as close to a perfect fit as possible?
This one-minute video will show you an example of over-fitting. After watching it, the odd idea of over-fitting will suddenly seem intuitive!
(HINT FOR VIEWING: Click on the settings gear at the bottom of the video, and set it to HD)
This example of overfitting comes from our recent video newsletter, Finding the Best Price for Your Product. It’s a wee bit nerdy, but if you ever work with price and demand data, and need to figure out the optimal price for your product or service, we introduce you to two great tools and how to use them.