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Glossary entry

French term or phrase:

fonction de perte

English translation:

loss function

Added to glossary by Neil Rear
Nov 30, 2005 10:03
20 yrs ago
French term

fonction de perte

"La Banque Centrale a une fonction de perte qui fait
intervenir le chômage et ses anticipations d’inflation, qui sont donc différentes de celles du secteur privé". (Part of a text on variations in long and short-term interest rates.)

Proposed translations

25 mins
Selected

loss function

Basically it's an econometric model parameter which adjusts the model's results by a given proportion, from 0% to 100%, for the error in the results of the model in the previous period. For example, if the model estimated a value of 95 for the last period but the actual observation was 100, the loss function would adjust the model's estimate for the given period by five or a proportion thereof.
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4 KudoZ points awarded for this answer. Comment: "Great explanation, Matt! Tahnk you."
7 mins

loss-making operation

That is what the term would mean but I am not quite sure how it fits into this context.
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5 hrs

loss adjustment mechanism

This may fit?
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