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2011 | OriginalPaper | Chapter
Self-Learning Linear Models
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This chapter covers the theoretical and technical background of the specific learning method later employed in Chapters 6 and 7 to actually forecast latent demand based on its characteristics as described in Chapter 5. The presented method rests on the
Bayesian
interpretation of probability, which is fundamentally different from the classical or
frequentist
interpretation, where probabilities are simply viewed “in terms of the frequencies of random, repeatable events” (see, e.g., Bishop, 2006, p. 21).