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What is Credit Scoring with Machine Learning Models about?

The paper compares the predictive abilities of six credit scoring models, including Linear Discriminant Analysis, Random Forests, Logistic Regression, Decision Trees, Support Vector Machines, and Deep Neural Networks, using a dataset of 688 observations. The study finds that machine learning techniques outperform traditional statistical models in predicting loan defaults. The research highlights the growing importance of artificial intelligence and machine learning in financial decision-making and credit ri

Author

Trung Nguyen Nam

Language

EN