Hi all, Am i correct in assuming that question 3 of this paper referring to model validation process is no longer covered by the syllabus as I don't remember anything close from the notes?
You are right that there isn't anything in the reference texts specifically about model validation. That was also true in 2010. The question appears to expect candidates to draw upon the core reading in Chapter 17 (Use of models in ERM) and prior studies (especially CA1). A reasonable answer could be developed using these key themes (eg qualitative as well as quantitative, assumptions and data etc). Application of key themes in the course to new situations is a skill that is commonly tested in the ST9 exam.
Retrospectively it is a standard ST9 question and the solution was developed BRILLIANTLY. KODUS TO THE EXAMINERS!
