A trivial algorithm, which gives each movie its average grade, produces an RMSE of 1.0540. An algorithm used by Netflix, called Cinematch, uses "straightforward statistical linear models with a lot of data conditioning". It produces an RMSE of 0.9525, a 9.6% improvement. In order to win the grand prize of $1,000, a participant must improve the RMSE by another 10%, to 0.8563.
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