intermediate~4h

LM Evaluation Metrics: Entropy, Cross-Entropy & Perplexity

The information-theoretic foundation of language model evaluation: entropy, cross-entropy, perplexity, and bits-per-character — and why these metrics are both powerful and limited.

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📚 Prerequisites(1)

🎓 Learning objectives

  • Derive perplexity from cross-entropy and explain its meaning as a branching factor
  • Compute sliding-window perplexity for documents longer than the model context length
  • Identify when BPC normalization is required vs. raw perplexity comparison
  • Explain why low perplexity does not guarantee good downstream task performance
  • Choose the right test set and tokenization strategy for a fair PPL comparison

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📂 Subtopics

Related concepts

cross-entropy lossNLL training objectiveKL divergencetokenizationbits-per-characterShannon entropyperplexity benchmarkssliding-window evaluationdata contaminationmodel evaluation

Next to learn

ai-as-judgeevaluation-pipeline-designmodel-selection-benchmarking