Article ID Journal Published Year Pages File Type
388403 Expert Systems with Applications 2008 6 Pages PDF
Abstract

Credit scoring models often use linear or logistic regression to investigate the relation between observed characteristics and credit ratings. The basic relation is, however, a form of Bayes’ theorem. This paper proposes a model in which estimation techniques from hidden Markov models are adapted to evaluate the parameters of a risk profile. The risk being estimated might be financial, as in credit scoring, or alternatively whether an observed member of a population might represent some terrorist threat.

Related Topics
Physical Sciences and Engineering Computer Science Artificial Intelligence
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