Prior probability, in Bayesian statistical inference, is the probability of an event based on established knowledge, before empirical data is collected.

Traders in bonds and credit default swaps are bombarded with information on the default probabilities implied by credit spreads using a simple ratio.

Information generated by the house-selling probability model could provide the seller with recommendations on what can be done -- reducing the asking price or remodeling, for example -- to ...

Decision trees are a major tool in corporate finance. Discover how binomial trees play an integral role in the pricing of interest rates.

As an example, the proposed model, benchmarked with the rating transition model based on the Merton model, is used to estimate the probability of default term structure for a commercial portfolio, ...

The measure is in the same spirit as Achen's (1982) "level importance" measure for linear models and thus fills an important gap in logit regression analysis. We show, on the basis of simulations and ...

In this article, we develop a model-free procedure to estimate multiclass probabilities based on large-margin classifiers. In particular, the new estimation scheme is employed by solving a series of ...