Since we learn continuously, today's topic is #bootstrapping
"Bootstrapping in #machinelearning is a resampling technique used to estimate the accuracy and reliability of a model, particularly when dealing with limited data or complex models. It involves creating multiple new datasets by randomly sampling from the original dataset with replacement. This allows for the estimation of a statistic's distribution, like a model's performance, and the calculation of confidence intervals without relying on strong assumptions about the data's underlying distribution"
While in #finance and #businesses
In finance, bootstrapping has two main meanings: 1) a strategy for funding a business by using personal savings, reinvesting early profits, and minimizing expenses to avoid external loans or investment, allowing founders to retain control. 2) A method for constructing a yield curve from the market prices of coupon-bearing bonds and swaps to determine the term structure of spot returns, filling in missing zero-coupon rates through a recursive process.
Bootstrapping a Business
This method involves building a company from the ground up using internal resources and early revenue.
Funding Sources:
Personal savings, personal debt (if manageable), and profits generated by the business are used.
Strategies:
Founders focus on frugality, controlling costs, and creative financial management to stretch limited resources.
Benefits:
Founders maintain full ownership and control over the business, free...
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