AqrMediumStatistics & Probability00:00

Welcome to your interview for the Research Analyst role at Aqr.
The question is on your right: Limitations of Statistical Models. Take a moment with it first.
Talk your thinking through with me if you like - when you're confident, submit your answer and I'll grade it like a real screen. You have three graded attempts to score 7/10 or better.
How would you explain the limitations of a statistical model?