discussion question 2 12

You previously built a model that was designed to predict when customers would default. It included macro-economic variables such as unemployment rate, GDP, and other market indicators. When the model was initially built, it proved to be quite accurate. One year later, the model’s accuracy has decreased significantly. What could have occurred during that time to reduce the efficacy of the model? When building models, should one expect them to work indefinitely? Why? What could be done to keep the model current? Provide two or three examples.