The value of a model is determined by
A) the usefulness of its predictions in the real world.
B) the extent of the profit earned by applying it.
C) the realism of its assumptions.
D) the model's attention to real world details.

Question

Quizplus · Accepted Answer

The primary value of a model lies in its ability to make accurate predictions about the real world. If a model's predictions can be put to use in practical applications, such as optimizing business processes or improving medical treatments, it is considered useful and valuable. While assumptions and attention to detail are important factors in model development, their impact on the model's overall value is secondary to its predictive power. Profit earned may be a useful measure of a model's success but it is not the primary determinant of its value.

The Value of a Model Is Determined by