easy · FRM Part 1 Quantitative Analysis
In Bayesian inference, what does the term 'Updating' refer to?
- The transition from a prior probability to a posterior probability based on data.
- The recalibration of a portfolio's VaR limit after a new confidence level is set.
- The re-estimation of a linear regression model's slope and intercept coefficients.
- Gathering more historical observations so the sample size grows larger over time.
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