High Quality Content by WIKIPEDIA articles! In statistics, decision theory and economics, a loss function is a function that maps an event onto a real number representing the economic cost or regret associated with the event. Less technically, in statistics a loss function represents the loss (cost in money or loss in utility in some other sense) associated with an estimate being "wrong" (different from either a desired or a true value) as a function of a measure of the degree of wrongness.

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