Effective Model Validation
Presentation Type
Event
Student
No
Track
Finance/Insurance Application
Abstract
Model validation is a critical step in use of statistical and economic models. It is the set of processes and activities intended to verify that models are performing as expected, in line with their design objectives and business uses. In this session, we will discuss validation as it relates to financial and economic models. An effective validation framework should include three core elements: (i) evaluation of conceptual soundness, including developmental evidence, (ii) ongoing monitoring, including process verification and benchmarking, and (iii) outcomes analysis, including benchmarking. We will explore each of these elements and discuss statistical tools to support validation efforts.
Start Date
2-5-2019 1:00 PM
End Date
2-5-2019 1:50 PM
Effective Model Validation
Dakota Room 250 A/C
Model validation is a critical step in use of statistical and economic models. It is the set of processes and activities intended to verify that models are performing as expected, in line with their design objectives and business uses. In this session, we will discuss validation as it relates to financial and economic models. An effective validation framework should include three core elements: (i) evaluation of conceptual soundness, including developmental evidence, (ii) ongoing monitoring, including process verification and benchmarking, and (iii) outcomes analysis, including benchmarking. We will explore each of these elements and discuss statistical tools to support validation efforts.