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Before factor construction of the scale could be observed, the KMO measure of sampling adequacy tests and Bartlett's Test of Sphericity were calculated.
The Kaiser-Meyer-Olkin measure of sampling adequacy tests whether the partial correlations among variables are small.
The theory of acceptance sets and their associated risk measures plays a key role in the design of capital adequacy tests.
In this case, responses can be predicted with model m at ξ⁎, parameters of the remaining models can be re-estimated and model adequacy tests can be performed in order to compute the number of discriminated models.
We argue that surplus invariance is a reasonable requirement from a regulatory perspective, since the corresponding capital adequacy tests do not depend on the surplus of a financial institution, which benefits exclusively its shareholders, but only on the default profile, which affects its liability holders.
Initial model selection was based on a battery of adequacy tests [ 15].
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Our tests of the necessary assumptions to the application of PCA were successful: KMO = 0.77 (i.e., measure of sampling adequacy test) and Bartlett's Test of Sphericity was significant (p <.001) (i.e., the test of significance of correlation between variables).
The factorability of the data was then assessed utilizing Kaiser-Meyer-Olkin Measure of Sampling Adequacy test (KMO) and Barlett's Test of Sphericity.
In other cases, Prudential said it reinsured obligations through a captive entity in Arizona, Pruco Re, whose reserves were "subject to asset adequacy testing by our actuaries".
We validate our results by applying a statistical adequacy test to the emulator.
The accuracy of the equation has been verified by Fisher's adequacy test.
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