Entropy of a Guessing Game

Course video 19 of 40

In this module, you will learn how to calculate and apply the vitally useful uncertainty metric known as “entropy.” In contrast to the more familiar “probability” that represents the uncertainty that a single outcome will occur, “entropy” quantifies the aggregate uncertainty of all possible outcomes. The entropy measure provides the framework for accountability in data-analytic work. Entropy gives you the power to quantify the uncertainty of future outcomes relevant to your business twice: using the best-available estimates before you begin a project, and then again after you have built a predictive model. The difference between the two measures is the Information Gain contributed by your work.

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