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Diminishing returns

As explained in Grokking Statistics

Diminishing returns is a pattern in which each additional input produces a progressively smaller increase in output.

Diminishing returns appear when each additional expense produces a smaller capability gain. System development may look exponential at first, then reach an inflection point where capability levels off. section 9.10

The pattern resembles an S-curve: data collection and modeling can approach high coverage, but an overly broad operating domain may level off far below 100%. section 9.10

When a system tries to do too much

A few photographs may help determine whether a father is good at golf. Determining an entire family’s life story requires much broader, potentially endless data coverage. When scope becomes too broad, narrowing the system’s viable capabilities can restore a realistic target. section 9.10

How Grokking Statistics covers it

How deep it goes
Explains the pattern through an S-curve, inflection point, coverage targets, and rescoping.
Examples
Uses golf photographs, a family life story, system features, and capability coverage as examples.
What you can do after
Evaluate capability growth, recognize an inflection point, and rescope an overly broad operating domain.
How it connects
Links diminishing returns to logistic functions, operating domains, data coverage, system capability, and scope.

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This explainer was generated by Manning's knowledge graph from the text of Grokking Statistics. The section links point to the parts of the book it draws on.