Traders in bonds and credit default swaps are bombarded with information on the default probabilities implied by credit spreads using a simple ratio.

Information generated by the house-selling probability model could provide the seller with recommendations on what can be done -- reducing the asking price or remodeling, for example -- to ...

As an example, the proposed model, benchmarked with the rating transition model based on the Merton model, is used to estimate the probability of default term structure for a commercial portfolio, ...

Decision trees are a major tool in corporate finance. Discover how binomial trees play an integral role in the pricing of interest rates.

During the making of an AI model, Performance metrics like accuracy, precision, recall, F1-score, ROC curves are used to ...

A prediction model from the global financial services firm JPMorgan Chase, analyzed by Bloomberg, suggests that the probability of an economic downturn has grown to 31 percent from 17 percent at ...

In this article, we develop a model-free procedure to estimate multiclass probabilities based on large-margin classifiers. In particular, the new estimation scheme is employed by solving a series of ...

In this note we wish to pass along an example that we have found useful when introducing the concepts of conditional probability and Bayes' Rule to undergraduate students. The advantages of this ...