Predicting Insolvency : A comparison between discriminant analysis and logistic regression using principal components
- Publisher: Uppsala universitet, Statistiska institutionen
Risk modelling | Discriminant analysis | Logisistic regression | Principal components | Solvency
In this study, we compare the two statistical techniques logistic regression and discriminant analysis to see how well they classify companies based on clusters – made from the solvency ratio – using principal components as independent variables. The principal componen...