Main Menu | Advanced Income Shock | Back Testing
Back-Testing is a validation process that compares the institution’s current performance with a saved set of prior assumptions.
The comparison of the assumptions from the past gives the user a basis to see if their assumptions were correct and how actual results vary from their anticipated assumptions.
When entering the Back Testing tab, the display defaults to the Sets tab, the first of the three tabs.
Sets
The Sets tab allows the user to create a Back Test set based on the currently processed database in the Process/Review tab.
Review
The Review tab displays the comparison between the original projections and the historical and current projections.
Historical Assumptions
The Historical Assumptions tab will show the index, reinvestment, and prepayment assumptions which were set at the time the default back test set was created.