CLASSIFICATION AND DISCRIMINATION IN THE ANALYSIS OF CREDIT RISKS: II.
Abstract
The report introduces a decision-theoretic approach to the problem of discriminating among several categories of credit risks. Bayesian decision rules are discussed and illustrated by a numerical example. Limitations of linear discriminant methods are pointed out. Practical problems concerning the unbiased testing of classification rules, the discriminations of rare patterns and the updating of the available statistical information are also discussed. The report concludes with a brief treatment of new approaches to sequential classification. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1968
- Accession Number
- AD0668322
Entities
People
- Giandomenico Majone
Organizations
- Carnegie Mellon University