There is considerable debate on the appropriate discrete choice framework for examining injury severity. Researchers in the safety field have employed ordered and unordered frameworks for examining the various factors influencing injury severity. The objective of the current study is to investigate the performance of the ordered and unordered response frameworks at a fundamental level. Towards ...

This paper describes the development of two models which determine the financial solidity of Dutch non-life insurers: an ordered logit model and a neural network model. Since bankruptcies of Dutch insurance companies are very rare, the annual assessment texts made by the supervisor are used to classify the companies into one of the three possible groups: strong, moderate, or weak. Both models u...

This paper estimates ordered logit and probit regression models for bank ratings which also include a country index to capture country-specific variation. The empirical findings provide support to the hypothesis that the individual international bank ratings assigned by Fitch Ratings are underpinned by fundamental quantitative financial analyses. Also, there is strong evidence of a country effe...

How much retirement income is needed in order to maintain one’s living standard at old age? As it is difficult to find a firm basis for an empirical treatment of this question, we employ a novel approach to assessing an adequate replacement rate vis-à-vis income in the pre-retirement period. We subject indications regarding satisfaction with current income as collected in the German Socio-Econo...

Based on the experience of teaching logistic regression to non-mathematicians, a number of areas of possible confusion are identified that may arise particularly when the method is contrasted with multiple linear regression. The fact that the model is multiplicative in odds ratios means that the concept of interaction needs to be clearly defined. Confidence intervals for the estimates of the od...

In biomedical studies the outcome of interest may be an ordinal, rather than a dichotomous, class label such as progression of disease. An example of an ordinal variable is drug toxicity levels evaluated as mild, moderate or severe. Another example is the Breast Imaging Reporting and Data System (BIRADS) [1] classification system. After a mammogram is read, a subjective score is assigned based ...

When customers are classified into ordered categories, which are defined from the outset, it may happen that the majority belongs to a single category. If a market researcher is interested in the correlation between the classification and individual characteristics, the natural question is whether one needs to collect data for all customers in that particular category. We address this question ...

Proximity is a fundamental concept in any comprehensive ontology of space (Worboys 2001). The provision of a context-contingent translation mechanism between linguistic proximity measures (e.g. “near”, “far”) and metric distance measures is an important topic in current GIS research. After a discussion of context factors that mediate the relationship between linguistic and metric distance measu...

Multinomial and ordered Logit models are quantitative techniques which are used in a range of disciplines nowadays. When applying these techniques, practitioners usually select a single model using either information-based criteria or pretesting. In this paper, we consider the alternative strategy of combining models rather than selecting a single model. Our strategy ofweight choice for the can...

The change of economic circumstances in recent years has increased the gaps of credibility among firms, and the necessity to measure the credibility adequately is an important ever-increasing factor. As the result, it is essential for banks to assess the rating evaluation of borrowers appropriately in order to measure the amount of credit risk. This paper reviews preceding studies regarding mod...