Stress Testing 03: Macroeconomic Market Shock Scenarios

[@SuperArslanArshad]

Thank you, awesome, you have made a complicated topic so simple.

[@joyceqiu4585]

Great video! Could you make some videos on stress testing credit risk models as well?

[@aytajsuleymanli7229]

Can we use these calculations in order to analysis credit portfolio - credit sales? How do independent variables affect the credit sales?

[@Me_in_Motion]

Hey could you make more videos on sensitivity and scenario analysis for loss forecasting models. Your videos are very good. Thankyou.

[@LittEconomics]

Hi Cessna - thank you for watching. I'm glad you're finding the videos useful. I can do that - I am teaching a few courses right now and focusing primarily on those, but I will try to add a few videos related to these topics soon.

[@tuguldurganbaatar9405]

We ignore the significance value of the variables?

[@WadeLitt]

Not that significance (e.g., standard errors, p-values, etc.) are unimportant, but measures of fit (e.g., R squared, AIC, BIC, etc.) are more important for predictive models than the significance levels on any given independent variable. Models for causal estimation - looking at the effect of a given x on outcome y - however, are the other way around.

[@nikunjpurohit562]

Why are you combing the equations? They are not independent variables

[@LittEconomics]

Which equations and variables do you mean?