Why Do Predictive Decision Models Incorporate Uncertainty

question 43

Essay

Why do predictive decision models incorporate uncertainty?

---

Definitions:

Data Collection

The process of gathering and measuring information on variables of interest in a systematic fashion, enabling one to answer stated research questions, test hypotheses, and evaluate outcomes.

Null Hypothesis

A statement or hypothesis set up to be nullified or refuted in order to support an alternative hypothesis in statistical testing.

Significance Tests

Statistical tests used to determine whether the observed data deviates significantly from the null hypothesis or not.

Significance Test

A statistical test used to determine if there is enough evidence in a sample of data to infer that a condition holds true for the entire population.