Example: stock market
To Explain or to Predict?

To Explain or to Predict?

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for the purpose of predicting new or future observa-tions. In particular, I focus on nonstochastic prediction (Geisser, 1993, page 31), where the goal is to predict the output value (Y) for new observations given their input values (X). This definition also includes temporal forecasting, where observations until time t (the input)

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