Nov

30

PREDICTING CORPORATE BANKRUPTCIES USING DECISION TREES [22] (2)

3. Data Preparation Phase
Fifty-six financial ratios were identified by the researchers through a search of the literature on bankruptcy prediction, 16 of which were then dropped due to duplication. There remained 40 financial ratios in the data set, including measures of growth, profitability, safety/leverage, activity/efficiency, and productivity.

Filled Under: General

Nov

29

Interest Rates

Most short-term investment issues (other than U.S. governments) are rated by one of the credit rating agencies, for example, Moody’s or Standard & Poor’s. The rating reflects the creditworthiness of the issuer, the amount being raised given existing debt, collateral or backup credit facilities, and the general level of interest rates. [...]

Filled Under: General

Nov

29

PREDICTING CORPORATE BANKRUPTCIES USING DECISION TREES [22]

1. Business/Research Understanding Phase
The recent economic crisis in East Asia has spawned an unprecedented level of corporate bankruptcies in that region and around the world. The goal of the researchers, Tae Kyung Sung from Kyonggi University, Namsik Chang from the University of Seoul, and Gunhee Lee of Sogang University, Korea, is to develop models for [...]

Filled Under: General

Nov

28

Frustation (7)

Fistlike Gestures. Dr. Louis Loeb, in a paper entitled The Fist, finds that this gesture communicates from the unconscious to the unconscious. His premise is that one can affect anothers reaction by merely clenching the hand in a fistlike gesture and using it to emphasize the verbal language. People who clench their fists may allow [...]

Filled Under: General

Nov

27

Excel Basic (2)

You can make any cell active by clicking it with the mouse. You can also move the active cell using the arrow, page up, and page down keys. If you try to move off the screen, the worksheet scrolls to keep the active cell in view. Excel also defines a few special [...]

Filled Under: General

Nov

27

MINING ASSOCIATION RULES FROM LEGAL DATABASES [21] (2)

4. Modeling Phase
Rules were restricted to having only a single antecedent and a single consequent. Many interesting association rules were uncovered, along with many uninteresting rules, which is the typical scenario for association rule mining. One such interesting rule was: If place of birth = Vietnam, then law type = criminal law, with 90% confidence.

Filled Under: General

Nov

26

Risk Aversion and Required Returns (3)

This example demonstrates a very important principle: In a market dominated by risk-averse investors, riskier securities must have higher expected returns, as estimated by the marginal investor, than less risky securities. If this situation does not exist, buying and selling in the market will force it to occur.We will consider the question of how much [...]

Filled Under: General

Nov

26

MINING ASSOCIATION RULES FROM LEGAL DATABASES [21]

1. Business/Research Understanding Phase
The researchers, Sasha Ivkovic and John Yearwood of the University of Ballarat, and Andrew Stranieri of La Trobe University, Australia, are interested in whether interesting and actionable association rules can be uncovered in a large data set containing information on applicants for government-funded legal aid in Australia. Because most legal data is [...]

Filled Under: General

Nov

25

Deal Successfully With Tight Deadlines and Pressure (2)

While you can easily learn how to organize yourself better and manage your time better, you can’t always get rid of the pressure and stress you experience each day. You can, however, learn how to channel that energy and make yourself more productive, as opposed to being too frazzled to think clearly.

Filled Under: General

Nov

25

PREDICTING ABNORMAL STOCK MARKET RETURNS USING NEURAL NETWORKS [20] (2)

4. Modeling Phase
The data were split into a training set (80% of the data) and a validation set (20%). A neural network model was applied, which uncovered the following results:
a. Certain industries had the most predictable abnormal stock returns, including:

Industry group 36: electronic equipment, excluding computer equipment
Industry Group 28: chemical products
Industry Group 37: transportation equipment
Industry [...]

Filled Under: General