Isabella
Fri Jun 28 2024
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5 answers
1341
Why is GLM better than LM?
Could you elaborate on why Generalized Linear Models (GLM) are often considered superior to Linear Models (LM) in the realm of cryptocurrency and financial analysis? While LMs have their uses, GLMs seem to be gaining popularity. Is it due to their ability to handle non-linear relationships and non-normal distributions, which are prevalent in financial data? Or is it their flexibility in incorporating different link functions that allows for a more nuanced understanding of the data? Furthermore, could you provide examples of scenarios where GLMs have delivered superior predictive power or insights compared to LMs in the field of cryptocurrency and finance?
