System and method for rating and selecting models

A computer-implemented system comprising

• (a) a digital processing device comprising a memory device and an operating system configured to perform executable instructions;
• (b) a computer program including instructions executable by the digital processing device to create an application, wherein the application comprising:
• (1) a software module configured to acquire data of a plurity of financial models;
• (2) a software module configured to select at least one benchmark model, wherein the benchmark model is indicated by a user or automatically determined;
• (3) a software module configured to use a stepwise-superior-predictive-ability test to evaluate performance of the financial models with respect to the benchmark model, rank the financial models, and identify one or more superior models from the financial models, wherein the stepwise-superior-predictive-ability test controls a generalized family-wise error rate;
• and
• (4) a software module configured to set one or more criteria for evaluating the performance.

A computer implemented method comprising

• (a) acquiring by a computer the data of a plurity of financial models;
• (b) selecting by a computer at least one benchmark model;
• and
• (c) utilizing by a computer a stepwise-superior-predictive-ability test to evaluate performance of the financial models with respect to the benchmark model, rank the financial models, and identify one or more superior models from the financial models, wherein the stepwise-superior-predictive-ability test controls a generalized family-wise error rate.

An electronics system comprising

• (a) a digital processing device comprising a memory device and an operating system configured to perform executable instructions;
• (b) a data reader configured by the digital processing device to acquire data of a plurity of financial models;
• (c) a benchmark model selector configured by the digital processing device to determine at least one benchmark model;
• (d) a statistical analyzer configured by the digital processing device to use a stepwise-superior-predictive-ability test to evaluate performance of the financial models with respect to the benchmark model, rank the financial models, and identify one or more superior models from the financial models, wherein the stepwise-superior-predictive-ability test controls a generalized family-wise error rate;
• and
• (e) a reporter configured by the digital processing device to present one or more selected financial models.