Development Sample
From Open Risk Manual
Definition
In the context of statistical Risk Model development, Development Sample denotes a subset of the empirical (historical) data that is used for Model Development, with the complement reserved for Model Validation activities.
Exclusions
The objective of constructing a development sample is to have a representative, statistically well defined data set that aspires to support decisions about future outcomes that follow historical patterns. To that end the sample must be restricted to data points that are not unusual, exceptional or otherwise very unlikely to be relevant for the modelling objective. Such exclusions must be carefully documented so as to create a clear and traceable record (Data Provenance)
