I am currently estimating different HB models (ACBC) by altering the price function (log, linear, especially different piecewise functions).
So far I understood that Pct. Cert. and RLH are better, the closer to one (obvious). However, I am not sure, whether I understand Avg. variance and RMS right. In the CBC/HB technical paper it is said on page 26 that both values predict a better fit if higher? Do I understand this right?
Here is an example of two of my HB models (ACBC). Pct. Cert. and RLH are quit the same. However, which model is better concerning Avg. Variance and RMS? According to the technical paper it should be the first (left) one?
Pct. Cert.: 0,532 0,516
RLH: 0,665 0,675
Avg. Variance: 3,523 2,453
RMS: 2,199 1,867