A model has force if it can positively and constructively influence decision makers. To a large extent, the force a model has on a decision maker is determined by the confidence they have in the model. Ideally that
confidence is a consequence of the model performing well in a high-quality verification and validation process. This paper presents a generalization of the Line of Sight Evidential Reasoning and Analysis methodology.
This methodology is used to construct a Bayesian network which codifies our belief about how specific verification and validation activities change a model’s force on a decision maker. Using the Bayesian network we rank
verification and validation activities based on how much impact they have on the model’s force. We then show how the ranking of verification and validation activities can change based on the intended use of the model. In
other words, the Generalized Line of Sight Evidential Reasoning and Analysis methodology provides a quantitative basis for allocating V&V resources and this allocation may be different for different decision makers
or model uses.
Validation Of OR Computations | Decision Analysis | Finance | OR In Banking | Quality Control |
Simulation