Stefan Jansen on How to Use ChatGPT and AI in Finance
Macro Hive Conversations With Bilal Hafeez
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How to Overcome the Risk of Overfitting Your Decision Tree
A lot of people get scared by machine learning, but in many ways the principles are from statistics and conometrics. As you get a little closer to the methodology, you re-encounter patterns like I tried to explain earlier with the neural networks where you sort of have logistic regressions as building blocks. The decision tree is a little bit similar in the sense that in order to create a new node, you want to overcome some hurdle. It really has to reduce your loss, function the one that you're trying to optimize by sufficient to make it worthwhile.
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