"30 Decision Points When Building a Model Sample selection: –How far back do you go to collect enough ""bads"" ? –Ratio of ""goods"" to ""bads"" ? Factor or"
{"Image DocumentName": "Decision Points When Building a Model", "Image ImageDescription": "Sample selection: How far back do you go to collect enough bads ? Ratio of goods to bads ? Factor or variable selection. Financial factors. Many financial metrics are very similar \u2013 highly correlated. Non-financial factors. More subject to measurement error and subjectivity. Model selection. Linear discriminant analysis (e.g. Altman\u2019s Z-Score, Zeta models) Logistic regression. Neural network or other machine learning methods (e.g. CART) Option based (e.g. KMV\u2019s CreditMonitor) for publicly traded companies. Model evaluation. In-sample. Out-of-sample ( field testing )", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}