The Problem Of Overfitting And How To Resolve It

Explaining How To Fix The Curse Of Overfitting In Python

Farhad Malik
FinTechExplained

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In this article, I want to explain one of the most important concepts of machine learning and data science which we encounter after we have trained our machine learning model. It is a must-know topic.

This article aims to explain the following topics:

  1. What Is Overfitting In A Machine Learning Project?
  2. How Can We Detect Overfitting?
  3. How Do We Resolve Overfitting?
Photo by Isaac Smith on Unsplash

Introduction — What Is Overfitting?

Let’s set the foundation of the concept first.

Let’s assume you want to predict the future price movements of a stock.

You then decide to gather the historic daily prices of the stock for the last 10 days and plot the stock price on a scatter plot as shown below:

The chart above shows that the actual stock prices are some-what random.

To capture the stock price movements, you assess and gather data for the following 16 features which…

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Farhad Malik
FinTechExplained

My personal blog, aiming to explain complex mathematical, financial and technological concepts in simple terms. Contact: FarhadMalik84@googlemail.com