Goodness of fit
From Open Risk Manual
Definition
The Goodness of fit of a statistical Risk Model describes how well it fits a set of observations, where fitness is typically a quantitative measure of discrepancy between observed (realized values) and the values expected (predicted, forecast) by the model.
There is a wide range of possible measures (See wikipedia collection). They can be used both to guide the process of Model Development and assist with the quantitative aspects of Model Validation
