Occam's Razor, also known as the "principle of parsimony" or "law of economy," is a problem-solving principle stating that, all else being equal, the simplest explanation should be preferred. The principle suggests that when two or more competing hypotheses explain a phenomenon equally well, we should select the one that makes the fewest assumptions. This does not mean the simpler explanation is always correct, but rather that it serves as a useful heuristic to guide us toward more direct and concise theories, avoiding unnecessary complexity. Its central idea is "Entities should not be multiplied beyond necessity"—in other words, we should not increase the complexity of an explanation unless it is necessary.