Optimal modeling for complex system design

The article begins with a brief introduction to the theory describing optimal data compression systems and their performance. A brief outline is then given of a representative algorithm that employs these lessons for optimal data compression system design. The implications of rate-distortion theory for practical data compression system design is then described, followed by a description of the tensions between theoretical optimality and system practicality and a discussion of common tools used in current algorithms to resolve these tensions. Next, the generalization of rate-distortion principles to the design of optimal collections of models is presented. The discussion focuses initially on data compression systems, but later widens to describe how rate-distortion theory principles generalize to model design for a wide variety of modeling applications. The article ends with a discussion of the performance benefits to be achieved using the multiple-model design algorithms.