What justifies the use of machine learning methods in this context is the presence of a large set of potential predictors, numbering at least 50.
The main objective of the final project is to predict future quantities of interest, such as stock returns, bond returns, bond yields, commodity prices, currencies, and many others. What justifies the use of machine learning methods in this context is the presence of a large set of potential predictors, numbering at least 50. Traditional statistical … Read more