Abstract This paper proposes a rating methodology that is based on a non-linear classification method, a support vector machine, and a non-parametric isotonic regression for mapping rating scores into probabilities of default. We also propose a four data set model validation and training...

Abstract Understanding how people make decisions from risky choices has attracted increasing attention of researchers in economics, psychology and neuroscience. While economists try to evaluate individual’s risk preference through mathematical modeling, neuroscientists answer the question by...