Re: Applied Analytics Using SAS Enterprise Miner -> Lesson 3: Introduction to Predictive Modeling Using SAS Enterprise Miner -> Model Complexity
I am not sure I fully understand and appreciate the meaning and implications of the concepts of bias and variance as presented in the above lesson:
1. I understand that bias would occur with model underfitting, because, essentially, the model would not be flexible/complex enough to capture "the signal"; could bias occur with overfitting too?
2. What does "variance" refers to, when talking abot overfitted models? The lesson text reads: "[...] An overly complex model might be too flexible, which can lead to overfitting, that is, accommodating nuances of the random noise in the particular sample (high variance)"
Does "high variance" refers to the fact that an overfitted model would produce highly variable/erratic predictions/results on a new data set (i.e. would not generalise well on new data)?