Comment by carnitine

5 years ago

You don’t do that though, there’s no use case to account with the output of a model.

I'm not sure what you mean - aside from speculative pricing models there are regulatory constraints too, that are a part of the same codebase.

Not to mention that there is a use case for auditing pricing models (as in external requirement, or internally) or comparing alternative models.

  • Sure we add up the numbers, but there are thresholds for everything anyway. We might not be concerned about something within a 1MM range let alone a floating point inaccuracy. The uncertainty is accounted for already.