The Use of Discrete Variable Selections for Credit Evaluation

Omega, Vol. 16, No. 5, pp. 469-480, September 1988

Posted: 18 Apr 2006

See all articles by Roger Calantone

Roger Calantone

Michigan State University

Anthony Di Benedetto

Temple University

Vihang R. Errunza

McGill University - Desautels Faculty of Management

Abstract

A discriminant model for evaluation of loan applications by bank managers should be capable of handling a wide variety of data in a parsimonious manner. Frequently the data will be discrete, and not easily converted to continuous form. Furthermore, missing data may be a problem. This paper examines the use of a discrete discriminant analytic technique in credit screening in a rural setting. The efficiency of the model is evaluated with regard to both rate and costs of misclassification.

Suggested Citation

Calantone, Roger and Di Benedetto, Anthony and Errunza, Vihang R., The Use of Discrete Variable Selections for Credit Evaluation. Omega, Vol. 16, No. 5, pp. 469-480, September 1988. Available at SSRN: https://ssrn.com/abstract=896136

Roger Calantone

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Vihang R. Errunza

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada
514-398-4056 (Phone)
514-398-3876 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
326
PlumX Metrics