To answer the question we first have to ask (and answer) the question of “what is a model?”. My definition of a model is a simulation of a subject that can be manipulated. Computer models of buildings, toy models of trains, financial models of businesses; all these share the commonality that they simulate something about the real world — Is the building structurally sound? What happens if I take a turn too fast? What will the cash flow statement of this company look like in a year?
What even is a statistical model?
What even is a statistical model?
What even is a statistical model?
To answer the question we first have to ask (and answer) the question of “what is a model?”. My definition of a model is a simulation of a subject that can be manipulated. Computer models of buildings, toy models of trains, financial models of businesses; all these share the commonality that they simulate something about the real world — Is the building structurally sound? What happens if I take a turn too fast? What will the cash flow statement of this company look like in a year?