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What Is One Major Drawback from Using Empirical Estimates to fiT

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What is one major drawback from using empirical estimates to fit the "true" interest rate tree?


Definitions:

Classical Conditioning

An instructional approach where repetitively linking two stimuli causes a reaction, at first prompted by the second stimulus, to be elicited by the first stimulus over time.

Imprinting

A form of learning occurring at a particular life stage that is rapid and apparently independent of the outcomes of behavior.

Operant Conditioning

A learning process by which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

The process of acquiring knowledge through the repeated combination of two stimuli, where a response initially caused by the second stimulus is ultimately caused by the first stimulus alone.

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