Big Data

Business Failure Prediction Model Based on Grey Prediction and Rough Set Theory

Date Added: Feb 2009
Format: PDF

A lot of methods have been used in the past for the prediction of failure business like Discriminant analysis, Logit analysis, Quadratic Function etc. Although some of these methods lead to models with a satisfactory ability to discriminate between healthy and bankrupt, they endure some limitations, often due to the unrealistic assumption of statistical hypotheses. The authors have undertaken a hybrid advisable system aiming at weakening these limitations. A hybrid model that predicts the failure firms based on the past financial performance data, combining grey prediction and rough set approach is possible to predict using few data and quickly calculate.