The real test of a good model is
A) its degree of mathematical rigor.
B) the degree to which its assumptions conform to the "real world."
C) its usefulness in predicting outcomes.
D) how detailed it is.

Question

Quizplus · Accepted Answer

While mathematical rigor, conformity to real-world assumptions, and level of detail are important factors in model building, the ultimate test of a good model is its ability to accurately predict outcomes. A model that cannot provide useful predictions is not truly effective.

The Real Test of a Good Model Is