Predictive model calibration

This is the code supporting a blog posting on the Quantitative Support Services blog (http://www.quantsupport.com/qss-blog.html).

In this post, we discussing three concepts in predictive modeling:

* Monte Carlo methods
* Model calibration
* Bootstrapping

The first and the third concepts are closely related to each other and are among the more useful methods of this modern, computational era. We see that (thanks to the speed of modern computers) we can bypass the pages of equations and the constricting assumptions that dominated mathematical journal articles of the last 50 years and get straight to testable results.

The second concept is the mindset we'll need to test these results and decide if they have any merit.