When performance estimation is off
Imagine you're a data scientist at a bank, working on a loan default use case. You receive labels to validate your model and performance estimation algorithm every month. During one particular month, you observe that many customers with well-paid jobs are defaulting more often due to a significant surge in inflation and a corresponding job crisis.
As you compare the estimated and realized performance, you notice a significant disparity between them.
What could be why the performance estimation algorithm is not as effective in this situation?
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