“The world may be nonlinear, and we’ve got techniques that help us sort of understand linear functions. So here’s the first thing we can do. The first thing we can do is we can just approximate our nonlinear function with a linear function so we’ve got this nonlinear function here right, but we’re just gonna do a three linear function to approximate it. So that’s the best possible approximation. And so what we can do is we can say I have a model. So in this case I may have a model that says this is my functional form, this is what should happen. “- Transcript from Scott Page Coursera
Source:
Scott Page Model Thinking MOOC Course
