Difference between revisions of "Discriminant Analysis"
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Latest revision as of 12:27, 5 September 2020
Definition
Discriminant Analysis is one of the earliest methods of quantitative credit risk analysis. It produces a Discriminant Score.
How it Works
Discriminant analysis relies on a particular distribution assumption (e.g., Multivariate Normal) for the characteristics of the population with and without the discriminating attribute (good/bad risk)