Parametric Models

Parametric models are mathematical frameworks used to analyze data by assuming a specific form with a fixed number of parameters. These parameters capture the essential features of the data’s underlying pattern, allowing the model to make predictions or understand the data efficiently. For example, a simple linear regression model assumes a straight-line relationship between variables, characterized by slope and intercept. Once these parameters are estimated from the data, the model can predict new outcomes. Parametric models are useful when the underlying data structure is well-understood and can be summarized with a limited set of characteristics.