Terms Beginning With 'b'

Back Testing

  • January 03, 2020
  • Team Kalkine

Back testing is way of testing if the predictions of a model are in accordance with realised data. Back testing is performed by checking whether the losses (actual historical) are distinct from the predicted losses by the model. For instance, in case of risk estimation, if the actual losses are higher, then the model is underestimating risk and vice versa. 

x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK