10 years ago
Defining Measures of Success for Predictive Models

 Excerpted from Chapter 2 of Mr. Abbott’s book Applied Predictive Analytics, Wiley 2014 The determination of what is considered a good model depends on the particular interests of the organization and is specified as the business success criterion. The business success criterion needs to be converted to a predictive modeling criterion so the modeler can use it for selecting models. If the purpose of the model is to provide highly accurate predictions or decisions to be used by the business, measures of accuracy will be used. If interpretation of the business is what is of most interest, accuracy