This tutorial gives an overview of SHAP (SHapley Additive exPlanation), one of the most commonly used techniques for examining a black-box machine learning (ML) model. Besides providing the necessary game theoretic background, we show how typical SHAP analyses are performed and used to gain...

In the machine learning community, the Gini index is a very popular score for model selection, and it is also used in actuarial science for evaluating insurance pricing models. The purpose of this tutorial is to discuss the Gini index, both its version in economics and its version in machine...

Structured additive regression (STAR) models are a rich class of regression models that include the generalized linear model (GLM) and the generalized additive model (GAM). STAR models can be fitted by Bayesian approaches, component-wise gradient boosting, penalized least-squares, and deep...

In some applications of supervised machine learning, it is desirable to trade model complexity with greater interpretability for some covariates while letting other covariates remain a "black box". An important example is hedonic property valuation modeling, where machine learning techniques...

This longitudinal study of large European firms (1993-2007) offers a conceptual model that explains how two key aspects of the macro-competitive environment, macroeconomic growth and foreign competition, shape product and international diversification. The results indicate that greater foreign...