Monday, July 4, 2011

Errata: Simple vs Complex models

The comment I attributed to Schumpeter in my last post on Simple v Complex models actually belongs to EF Schumacher, the writer of "Small is Beautiful". Have that book lined up in the library reading list.

To summarize why I like simpler models,
1. More interpretable: Particularly important when there is data overload happening and one isn't really sure what is signal and what is noise
2. Easier to maintain and update as part of a production system
3. Likely a truer representation of the world: Going back to good old Occam's Razor principles. At least in a way that lends itself to meaningful decision making


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