The grid search will take each set of parameters and fit the model. Then you can print out a few measures or the best one you think. There are a few different measures you could use. You can use the accuracy, R-squared, AIC,…"
I have worked on a project just like this one. Our statement was, holding other factors constant, increasing the amount of media spend in your budget will increase x up to a certain point. It will get to a point where…"
I was wondering if anyone here has much experience in building econometric models - specifically in calculating diminishing returns as there are tonnes of different ways to go about this. For simplicity, I have previously used an exponential decay (e to the power of -(a.x) where a is the rate of diminishing returns and x is the rate of media spend - but there are many other ways to model this (e.g. Linear log models, Multiplicative Competitive Interaction) and I'd be interested to hear of…See More