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This section discusses various methods that can be used to help validate the quality and predictive capabilities of a model. Some techniques can be carried out during a model's construction which will help ensure that the finished model is as free from errors and as accurate and useful as possible. Other techniques can only be executed at a future time when some of the model's predictions can be compared against what actually happened but one may nonetheless devise a plan to help facilitate that comparison.


Key points to consider are:


  • Does the model meet management needs?

  • Is the model free from errors?

  • Are the model's predictions robust?


The following topics describe the methods we use to help answer these questions:





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