We often hear about algorithms that can forecast our preferences, suggest products, or even detect health issues before they become apparent. How can a machine, which doesn’t have consciousness or feelings, accurately predict something so complex as human behavior? I’m fascinated by this intersection of technology and psychology and would love to hear from anyone who can shed light on the mysterious ways these algorithms seem to ‘know’ us. What’s happening behind the scenes that makes this possible?
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Statistical models take in information about the world and use patterns in those data to make predictions. There are massive amounts of data showing that people with more education earn more money. A statistical model trying to predict your income can use that data to infer your income based on your level of education.
With a great degree of care in how the model is constructed and a massive amount of data about many different facets of the world it is possible to make very good predictions about many things. Fundamentally it’s no different from the linear regression you probably did in high school math.
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