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by davedx 553 days ago
Excellent stuff! I’ve worked in this area. Have you considered applying ratios like the Altman z-score?

I’m also curious how you back tested to get the final scoring.

1 comments

Thank you! Not yet, but it sounds interesting. The possibilities are endless. Currently, I am testing some methods from survival analysis.

The data is very imbalanced; there are very few insolvent companies compared to solvent ones. Therefore, I work with synthetic data in my training dataset. To get the final score, I need to scale the predictions to achieve a heavily right-skewed distribution.

Currently, I am using the method Platt scaling.