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Machine Learning Street Talk (MLST) cover image

Adversarial Examples and Data Modelling - Andrew Ilyas (MIT)

Machine Learning Street Talk (MLST)

NOTE

Missteps in Model Assumptions Can Impair Outcomes

Incorrect assumptions regarding data representation and self-selection can lead to significant limitations in machine learning models, particularly for banks. Mis-specification can result in unclear parameter outcomes, undermining the effectiveness of the loss function and complicating the balance of various biases. As more terms are added, the challenge of ensuring no single bias dominates becomes increasingly complex. The need arises to revert to a more restrictive data-generating process to accurately recover true parameters, highlighting the difficulties in operating without a well-defined data framework in a machine learning context.

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