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NEW QUESTION: 1
Which of the following is a cause of model risk in risk management?
A. Misspecification of the model
B. All of the above
C. Incorrect parameter estimation
D. Programming errors
Answer: B
Explanation:
Explanation
Model risk is the risk that a model built for estimating a variable will produce erroneous estimates. Model risk is caused by a number of factors, including:
a) Misspecifying the model: For example, using a normal distribution when it is not justified.
b) Model misuse: For example, using a model built to estimate bond prices to estimate equity prices c) Parameter estimation errors: In particular, parameters that are subjectively determined can be subject to significant parameter estimation errors d) Programming errors: Errors in coding the model as part of computer implementation may not be detected by end users e) Data errors: Errors in data used for building the model may also introduce model risk Therefore the correct answer is d, as all the choices are a source of model risk.
NEW QUESTION: 2
A. USB 3.0
B. HDMI
C. CAT6e
D. eSATA
E. SPDIF
F. Molex
Answer: A,D
NEW QUESTION: 3
You are writing tests for an application that tracks model rocket launches. The application includes a function named Velocity that calculates the velocity of a launch, as shown in the following code. (Line numbers are included for reference only.)
You need to test that the Velocity function:
Throws an exception if the launch is null Returns epsilon if the time is below the measurement threshold Returns zero if the launch did not result in any movement Returns the velocity as distance divided by total seconds
Which type of tests must you write?
A. Performance
B. End-to-end
C. Unit
D. Integration
Answer: C
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