Intro to Econometrics
The Bayesian Information Criterion (BIC) is a statistical tool used for model selection that estimates the quality of a model relative to other models. It balances model fit and complexity by penalizing the number of parameters, helping researchers choose models that explain the data well without overfitting. This criterion is particularly relevant when evaluating goodness of fit, detecting model misspecification, estimating ordered choice models, and interpreting results in regression analysis.
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