In business, a black box model is a financial model where a computerized program is designed to change various investment data into strategies that are useful for investments. The black in the black box model refers to the lack of access to the internal workings or parameters of functions of the model.

Why is it called a black box model?

Computing and mathematics. In computer programming and software engineering, black box testing is used to check that the output of a program is as expected, given certain inputs. The term “black box” is used because the actual program being executed is not examined.

What is white-box model?

White-box models are the type of models which one can clearly explain how they behave, how they produce predictions and what the influencing variables are. There are two key elements that make a model white-box: features have to be understandable, and the ML process has to be transparent.