In the financial sector, __________ are used to construct financial instruments such as derivatives.
A)descriptive and prescriptive models
B)predictive models
C)descriptive models
D)prescriptive models

Question

Quizplus · Accepted Answer

Predictive models are used in the financial sector to construct financial instruments such as derivatives. These models use statistical algorithms and machine learning techniques to predict future market trends and identify potential risks. Descriptive models, on the other hand, are used to analyze historical data and gain insights into past market patterns, while prescriptive models use optimization techniques to recommend actions or trades based on the analysis of available data.

In the Financial Sector, __________ Are Used to Construct Financial