Browse > Article

Development of educational software for coarse classifying and model evaluation in credit scoring  

Jung, Ki-Mun (Department of Informational Statistics, Kyungsung University)
Publication Information
Journal of the Korean Data and Information Science Society / v.21, no.6, 2010 , pp. 1225-1235 More about this Journal
Abstract
The coarse classifying procedure in credit scoring splits the values of a continuous characteristic into bands and the values of a discrete characteristic into groups of values. Also, the scorecard degrades over time and thus we should adjust the cut-off score being used. However, the coarse classifying and the adjustment of cut-off score in credit scoring are very complicate and troublesome procedure. Thus, in this paper, we develop a software for the coarse classifying and the model evaluation by using Visual Basic Language. By using the developed software, we can find the best split in the coarse classifying and the optimal cut-off score in the model evaluation.
Keywords
Coarse classifying; credit scoring; cut-off score; Visual Basic;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
연도 인용수 순위
1 Choi, H. S. (2006a). A program for teaching Type I and Type II errors. Journal of the Korean Data & Information Science Society, 17, 19-30.   과학기술학회마을
2 Choi, H. S. (2006b). The teaching of statistics using Excel VBA. Journal of the Korean Data & Information Science Society, 17, 811-820.   과학기술학회마을
3 Choi, H. S. and Kim, T. Y. (2005). Computer simulation program for central limit theorem. Journal of the Korean Data & Information Science Society, 16, 359-369.   과학기술학회마을
4 Jung, K. M., Kim, M. C. and Yum, J. K. (2006). Development of software for coarse classifying. Journal of the Korean Data & Information Science Society, 17, 1085-1090.   과학기술학회마을
5 Thomas, L. C. (2000). A Survey of Credit and behavioral scoring: Forecasting financial risk of lending to consumers. International Journal of Forecasting, 16, 149-172.   DOI   ScienceOn
6 Thomas, L. C. (2009). Consumer credit models: pricing, profit and portfolios, Oxford University Press, Oxford.
7 Thomas, L. C., Edelman D. B. and Crook, J. N. (2002). Credit scoring and its application, SIAM.
8 Thomas, L. C. and Jung, K. M. (2010). When to rebuild and when to recalibrate credit scorecards. 24th European Conference on Operational research.