Four laboratory studies were conducted to test the hypothesis that correct Bayesian reasoning can be predicted by two factors of task complexity --- the number of mental steps required to reach the normative solution, and the compatibility between the framing of data presented and the framing of...

Credit risk modelling has become increasingly important to Banks since the advent of Basel II which allows Banks with sophisticated modelling techniques to use internal models for the purpose of calculating capital requirements. A high level of credit risk is often the key reason behind banks...