SCAB34S SPLINES:
Alternating Conditional Expectations

Alternating Conditional Expectations Modeling, (ACE), is provided by the B34S® ProSeries Econometric System and SCAB34S SPLINES software products. SCA WorkBench provides the user interface to shell an ACE modeling and validation environment in the B34S program suite.

The WorkBench product is a companion to the SCA Statistical System and SCAB34S software, providing a graphical user interface for several applications including ACE modeling for cross sectional data, ACE-Logit modeling for ordered data, and ACE models for time series data. Within the context of ACE model validation, the predictive performance of these models may be validated by comparing the in-sample and out-of-sample predictive values to linear regression models using OLS, MINIMAX, or L1 estimation methods. Within the context of ACE-Logit model validation, the predictive performance of these models may be validated by viewing the Confusion Matrices and Lift-Gains between the ACE model and an OLS, Probit, or Logistic model.

• Overview of ACE Modeling Environment
• Examples of ACE Modeling