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hi, does any know about the concept of LR, LR=-2ln(1-p)^T-N*p^N) + ...... it said H0: accurate model H1: inaccurate model we reject H0 if LR>3.84, so which means if LR<3.84, we can accept the Exception Number of the back test. the Number could be 1 2 3 4 5 6 7, but 8 which made LR>3.84 we...

Hi, anyone knows about this? I found a book said Tier 1>Tier2 + Tier3 capital, but Tier1>=Tier2, Tier3=<250% of Tier1, my confusion is if T1=T2, T3=2.5*T1, how comes Tier 1>T1+2.5T1 ? thanks