Solomonoff Induction

Solomonoff Induction is an inference system defined by Ray Solomonoff that will learn to correctly predict any computable sequence with only the absolute minimum amount of data. This system, in a certain sense, is the perfect universal prediction algorithm. 

To summarize it very informally, Solomonoff induction works by:

• Starting with all possible hypotheses (sequences) as represented by computer programs (that generate those sequences), weighted by their simplicity (2^-n, where n is the program length);
• Discarding those hypotheses that are inconsistent with the data.

Weighting hypotheses by simplicity, the system automatically incorporates a form of Occam's razor, which is why it has been playfully referred to as Solomonoff's lightsaber....

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