Time frame. Every historical dataset forces a trade. Reach further back and you gain rows, which lowers variance and stabilizes estimates. Reach too far and you pull in periods that no longer represent today: a repriced product, a new underwriting rule, a regulatory shift. Those older values bias the model...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Bottom Line
- Exam Shortcuts
Learning objectives
- 2c
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