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In statistics and in empirical sciences, a data generating process is a process in the real world that "generates" the data one is interested in. This process encompasses the underlying mechanisms, factors, and randomness that contribute to the production of observed data. Usually, scholars do not know the real data generating model and instead rely on assumptions, approximations, or inferred models to analyze and interpret the observed data effectively. However, it is assumed that those real models have observable consequences. Those consequences are the distributions of the data in the population. Those distributors or models can be represented via mathematical functions. There are many functions of data distribution. For example, normal distribution, Bernoulli distribution, Poisson distribution, etc.
References
- Tu, Jun; Zhou, Guofu (2004). "Data-generating process uncertainty: What difference does it make in portfolio decisions?". Journal of Financial Economics. 72 (2): 385–421. doi:10.1016/j.jfineco.2003.05.003.
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This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Data generating process news newspapers books scholar JSTOR December 2024 Learn how and when to remove this message In statistics and in empirical sciences a data generating process is a process in the real world that generates the data one is interested in This process encompasses the underlying mechanisms factors and randomness that contribute to the production of observed data Usually scholars do not know the real data generating model and instead rely on assumptions approximations or inferred models to analyze and interpret the observed data effectively However it is assumed that those real models have observable consequences Those consequences are the distributions of the data in the population Those distributors or models can be represented via mathematical functions There are many functions of data distribution For example normal distribution Bernoulli distribution Poisson distribution etc ReferencesTu Jun Zhou Guofu 2004 Data generating process uncertainty What difference does it make in portfolio decisions Journal of Financial Economics 72 2 385 421 doi 10 1016 j jfineco 2003 05 003 https stats stackexchange com questions 443320 what does a data generating process dgp actually meanThis statistics related article is a stub You can help Wikipedia by expanding it vte
