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OOGHE, H. 1 SPAENJERS, C. 1 VANDERMOERE, P. 1
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Faculteit Economie en Bedrijfskunde, Universiteit Gent 1
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Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 1
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Business failure prediction: simple-intuitive models versus statistical models
OOGHE, H.; SPAENJERS, C.; VANDERMOERE, P. - Faculteit Economie en Bedrijfskunde, Universiteit Gent - 2005
We give an overview of the shortcomings of the most frequently used statistical techniques in failure prediction modelling. The statistical procedures that underpin the selection of variables and the determination of coefficients often lead to ‘overfitting’. We also see that the ‘expected...
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