Which are the Right Covariates in HB Estimation?

Kurz P., Binner S., 2011 – SKIM Conference – Wien 2011

Which covariates should be used in Hierarchical Bayes estimation to improve model quality?

The study finds that covariates in HB models improve prediction accuracy under specific conditions. In real-world data, covariates rarely affect results significantly. They are mainly useful when clear segments exist and segmentation is the primary goal.