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Offline Metrics:

Purpose: To validate and refine models during development before they go live.

Examples: Log Loss, AUC (Area Under the Curve) for classification problems; RMSE (Root Mean Square Error), MAPE (Mean Absolute Percentage Error) for regression and forecasting.

Advantages:

  • Safer testing environment.
  • No impact on real users.
  • Controlled conditions.

Limitations:

  • May not fully capture real-world complexities or user interactions.

Online Metrics:

Purpose: To monitor and optimize models in a live setting.

Examples: Click-through rates, conversion rates, user engagement metrics.

Advantages:

  • Reflects real-time performance and user interactions.
  • Allows for immediate adjustments.

Limitations:

  • Riskier as poor performance affects actual users.
  • Influenced by external variables.