“The big coefficient: If we have a simple linear regression model, we have some equation like Y = a1 x1 + a2 x2 + b, right? And x1 and x2 are called the independent variables, and y’s the dependant variable. So, for example, Y might be sales of a product. And x1 might be advertising in magazines and x2 might be advertising in television. Now we can look at these two coefficients, a1 and a2 and figure out which one’s bigger. And what that’s telling us is we get sort of more bang for the buck from advertising on magazines or from advertising on television. If it’s television, if a2 is bigger than a1, then that’s where we spend our money. So the idea is you put your assets, you put your resources on the variables that have the bigger coefficients. So this big coefficient thinking has led to something that people like to call Evidence Based blank. So there’s Evidence Based Medicine. What you do is you look at all sorts of different treatments that have been tried on patients…”- Transcript from Scott Page Coursera
Source:
Scott Page Model Thinking MOOC Course
