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The purpose of this paper is to perform a comparative study of prediction performances of an artificial neutral network (ANN) model against a linear prediction model like a linear discriminant analysis (LDA) with regards to forecasting corporate credit ratings from financial statement data.

The ANN model used in the study is a fully connected back‐propagation model with three layers of neurons. The paper uses a comparative approach whereby two prediction models – one based on ANN and the other based on LDA are developed using identically partitioned data set.

The study found that the ANN model comprehensively outperformed the LDA model in both training and test partitions of the data set. While the LDA model may have been hindered by omitted variables; this actually lends further credence to the ANN model showing that the latter is more robust in dealing with missing data.

A possible drawback in the model implementation probably lies in the selection of the various accounting ratios. Perhaps future replications of this study should look more carefully at choosing the ratios after duly addressing the problems of collinearity and duplications more rigorously.

The findings of this study imply that since ANN models can better deal with complex data sets and do not require restraining assumptions like linearity and normality, it may be overall a better approach in corporate credit rating forecasts that uses large financial data sets.

This study brings out the effectiveness of non‐linear pattern learning models as compared to linear ones in forecasts of financial solvency. This goes on to further highlight the practical importance of the new breed of computational tools available to techno‐savvy financial analysts and also to the providers of corporate credit.

Cryptocurrencies such as Bitcoin (BTC) attracted a lot of attention in recent months due to their unprecedented price fluctuations. This paper aims to propose a new method for predicting the direction of BTC price using linear discriminant analysis (LDA) together with sentiment analysis.

Concretely, the authors train an LDA-based classifier that uses the current BTC price information and BTC news announcements headlines to forecast the next-day direction of BTC prices. The authors compare the results with a Support Vector Machine (SVM) model and random guess approach. The use of BTC price information and news announcements related to crypto enables us to value the importance of these different sources and types of information.

Relative to the LDA results, the SVM model was more accurate in predicting BTC next day’s price movement. All models yielded better forecasts of an increase in tomorrow’s BTC price compared to forecasting a decrease in the crypto price. The inclusion of news sentiment resulted in the highest forecast accuracy of 0.585 on the test data, which is superior to a random guess. The LDA (SVM) model with asset specific (news sentiment and asset specific) input features ranked first within their respective model classifiers, suggesting both BTC news sentiment and asset specific are prized factors in predicting tomorrow’s price direction.

To the best of the authors’ knowledge, this is the first study to analyze the potential effect of crypto-related sentiment and BTC specific news on BTC’s price using LDA and sentiment analysis.

The purpose of this paper is to propose a multivariate-based method to classify products in replenishment categories based on principal component analysis (PCA) along with two classification algorithms, k-nearest neighbor (KNN) and linear discriminant analysis (LDA).

In the propositions, PCA is applied to data describing products’ features and demand behavior, and a variable importance index (VII) is derived based on PCA parameters. Next, products are allocated to inventory replenishment models applying the KNNs to all original variables; the classification accuracy is then assessed. The variable with the smallest VII is removed and a new classification is carried out; this iterative procedure is performed until a single variable is left. The subset yielding the maximum classification accuracy is recommended for future classification. The aforementioned procedure is repeated replacing the KNN by the LDA.

When applied to real data from a consulting company, the KNN classification technique led to higher performance levels than LDA, yielding 89.4 percent average accuracy and retaining about 80 percent of the original variables. On the other hand, LDA reached 87.1 percent average accuracy and retained 95 percent of the variables. Based on such results, the authors’ findings suggest that 14 out of the 24 variables are crucial in determining an inventory replenishment model for a product in a specific location replacement. Several of the retained variables were typically used in reorder point estimation or associated to market profile in specific locals.

The idea of this paper is to remove irrelevant and noisy market metrics that jeopardize the correct allocation of products to the most appropriate replenishment model.

The purpose of this paper was exploring and comparing different deterioration models based on statistical and machine learning approaches. These models were chosen from their successful results in other case studies. The deterioration models were developing considering two scenarios: (i) only the age as covariate (Scenario 1); and (ii) the age together with other available sewer characteristics as covariates (Scenario 2). Both were evaluated to achieve two different management objectives related to the prediction of the critical condition of sewers: at the network and the sewer levels.

Six statistical and machine learning methods [logistic regression (LR), random forest (RF), multinomial logistic regression, ordinal logistic regression, linear discriminant analysis and support vector machine] were explored considering two kinds of predictor variables (independent variables in the model). The main propose of these models was predicting the structural condition at network and pipe level evaluated from deviation analysis and performance curve techniques. Further, the deterioration models were exploring for two case studies: the sewer systems of Bogota and Medellin. These case studies were considered because of both counts with their own assessment standards and low inspection rate.

The results indicate that LR models for both case studies show higher prediction capacity under Scenario 1 (considering only the age) for the management objective related to the network, such as annual budget plans; and RF shows the highest success percentage of sewers in critical condition (sewer level) considering Scenario 2 for both case studies.

There is not a deterioration method whose predictions are adaptable for achieving different management objectives; it is important to explore different approaches to find which one could support a sewer asset management objective for a specific case study.

The originality of this paper consists of there is not a paper in which the prediction of several statistical and machine learning-based deterioration models has been compared for case studies with different local assessment standard. The above to find which is adaptable for each one and which model is adaptable for each management objective.

This study uses intelligent modeling techniques with the purpose of examining the effect of various demographic, cognitive and psychographic factors on organ donation in Egypt.

Two artificial neural network models (multi‐layer perceptron neural network and probabilistic neural network) are compared to two standard statistical methods (linear discriminant analysis and logistic regression). The variable sets considered are sex, age, educational level, religion, altruistic values, perceived benefits/risks of organ donation, organ donation knowledge, attitudes toward organ donation, and intention to donate organs.

The results show that artificial neural networks outperform traditional statistical techniques in profiling potential organ donors due to their robustness and flexibility of modeling algorithms.

The paper shows how it is possible to identify various dimensions of organ donation behavior by uncovering patterns in the dataset, and also shows the classification abilities of two neural network techniques.

This study updates the literature review of Jones (1987) published in this journal. The study pays particular attention to two important themes that have shaped the field over the past 35 years: (1) the development of a range of innovative new statistical learning methods, particularly advanced machine learning methods such as stochastic gradient boosting, adaptive boosting, random forests and deep learning, and (2) the emergence of a wide variety of bankruptcy predictor variables extending beyond traditional financial ratios, including market-based variables, earnings management proxies, auditor going concern opinions (GCOs) and corporate governance attributes. Several directions for future research are discussed.

This study provides a systematic review of the corporate failure literature over the past 35 years with a particular focus on the emergence of new statistical learning methodologies and predictor variables. This synthesis of the literature evaluates the strength and limitations of different modelling approaches under different circumstances and provides an overall evaluation the relative contribution of alternative predictor variables. The study aims to provide a transparent, reproducible and interpretable review of the literature. The literature review also takes a theme-centric rather than author-centric approach and focuses on structured themes that have dominated the literature since 1987.

There are several major findings of this study. First, advanced machine learning methods appear to have the most promise for future firm failure research. Not only do these methods predict significantly better than conventional models, but they also possess many appealing statistical properties. Second, there are now a much wider range of variables being used to model and predict firm failure. However, the literature needs to be interpreted with some caution given the many mixed findings. Finally, there are still a number of unresolved methodological issues arising from the Jones (1987) study that still requiring research attention.

The study explains the connections and derivations between a wide range of firm failure models, from simpler linear models to advanced machine learning methods such as gradient boosting, random forests, adaptive boosting and deep learning. The paper highlights the most promising models for future research, particularly in terms of their predictive power, underlying statistical properties and issues of practical implementation. The study also draws together an extensive literature on alternative predictor variables and provides insights into the role and behaviour of alternative predictor variables in firm failure research.

The purpose of this paper is to study the problem of fashion flat sketches classification and proposed an integrated approach. It aims to propose a fast, reliable method to handle multi-class fashion flat sketches classification problems and lay the foundation for the garment style query in the next step.

The proposed integrated approach adopts wavelet Fourier descriptor (WFD), linear discriminant analysis (LDA) and extreme learning machine (ELM). First, the discrete wavelet and Fourier transform are adopted to extract the shape features of fashion flat sketches. Then, LDA is employed for multi-class classification to reduce dimensionality. Finally, ELM is used as the classifier.

The experimental results show that the classification accuracy of the integrated approach is obtained at about 100 percent. Contrary to the traditional approaches, efficiency and accuracy are the advantages of the present approach.

Fashion concept is conveyed often in the form of the fashion illustration or sketch. This type of sketch is useful to imply the style and overall feel of the design. However, this sketch gives no clue about the parts or sections that make up each garment. For this reason, this paper only studies the classification of flat sketches.

A new shape descriptor named WFD is proposed. The WFD acquires high classification accuracy comparing with Fourier descriptor (FD) and multiscale Fourier descriptor (MFD) without dimensionality reduction and nearly the same classification accuracy comparing with FD while MFD easily causes small sample size problem with dimensionality reduction using LDA. In addition, ELM is first used as the classifier in the textiles field related to the classification problem.

Outlines previous research on business failure prediction models and investigates the impact of serial correlation and non‐stationarity in financial variables on models based on linear discriminant analysis, logit and cumulative sums using 1974‐1991 data from a sample of failed and non‐failed US firms, plus a similar 1992 sample. Presents and discusses the time series behaviour of the explanatory variables, the estimation of the three types of models and their error rates over time. Concludes that models based on variables with strong positive serial correlation deteriorate over time in their forecasting power; and calls for research to develop stationary models.

This paper aims to provide a framework of the supervised hyperspectral classification, to study the traditional flowchart of hyperspectral image (HIS) analysis and processing. HSI technology has been proposed for many years, and the applications of this technology were promoted by technical advancements.

First, the properties and current situation of hyperspectral technology are summarized. Then, this paper introduces a series of common classification approaches. In addition, a comparison of different classification approaches on real hyperspectral data is conducted. Finally, this survey presents a discussion on the classification results and points out the classification development tendency.

The core of this survey is to review of the state of the art of the classification for hyperspectral images, to study the performance and efficiency of certain implementation measures and to point out the challenges still exist.

The study categorized the supervised classification for hyperspectral images, demonstrated the comparisons among these methods and pointed out the challenges that still exist.

Rough set theory (RST) involves techniques for knowledge discovery or data mining. RST is typically applied within decision tables and offers an alternative to more conventional techniques for classification and rule induction. It is based on describing decisions or categories by means of certain approximations. Offers an overview of the basic principle through the use of a small example. Concludes with a marketing case study, dealing with the characteristics of different brands of cereal.