Explore ML and AI in practice
In this example, statistical machine learning and predictive modeling are used to assess the risk of default of a particular company
- Steps followed to implement the DLMM Model in R language
- Step 1 – Converting SPSS formatted data
- Step 2 – One by one empirical analysis of variables
- Step 3 – Cross-tabulation 01STATUS versus Industry Sector Code
- Step 4 – Exploring graphically the probability distribution of a variable
- Step 5 – Testing the normality of the probability distribution of a variable
- Step 6 – Evaluating the good/bad discriminant power of a variable
- Step 7 – Empirical monotonicity of ROE relative to good-bad progression
