Intro to Time Series
The Bayesian Information Criterion (BIC) is a statistical tool used for model selection that helps in identifying the best-fitting model among a set of candidates while balancing model complexity and goodness of fit. BIC takes into account the likelihood of the data given the model and penalizes models with more parameters, making it particularly useful in scenarios like vector autoregression, where multiple time series models can be compared to find the most appropriate one.
congrats on reading the definition of Bayesian Information Criterion (BIC). now let's actually learn it.