Goodness-of-fit tests are statistical methods used to determine how well a set of observed data matches a specific distribution or model. They help assess whether the underlying assumptions about the data are valid, which is crucial in fields that rely on modeling, such as insurance and risk management. These tests play a vital role in validating parametric distributions for claim severity, ensuring accurate representation of dependence structures in copulas, and evaluating the fit of aggregate loss distributions in reinsurance scenarios.
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