ABSTRACT
We will take some time to go through these, with the intent of finding their interpretations. But first of all, note that the probability distributions P[y=l|xi,x2] require exactly four parameters. You will observe that there are four P's, and six 8's. As the numbers suggest, the P's are the parameters with causal interpretations, and the 8's are nuisances. Since
12. The Two-Factor Model
the 8's will actually be present in real world situations, it is necessary to understand them, even if we would prefer that they weren't there.