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Support Vector Machines and Bankruptcy Prediction

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  • Zazueta, Jorge
  • Zazueta-Hernández, Jorge
  • Heredia, Andrea Chavez

Abstract

We provide an intuitive construction of a support vector machine (SVM) and explore the motivation behind using different tools for data classification. Beginning with linear classifiers, we build intuition on the subtlety of classification in increasingly non-linear circumstances and conclude with an example of bankruptcy prediction to illustrate the effectiveness and flexibility of support vector machines.

Suggested Citation

  • Zazueta, Jorge & Zazueta-Hernández, Jorge & Heredia, Andrea Chavez, 2023. "Support Vector Machines and Bankruptcy Prediction," SocArXiv 7z24k, Center for Open Science.
    • Handle: RePEc:osf:socarx:7z24k
    DOI: 10.31219/osf.io/7z24k
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    References listed on IDEAS

    as
    1. van Buuren, Stef & Groothuis-Oudshoorn, Karin, 2011. "mice: Multivariate Imputation by Chained Equations in R," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 45(i03).
    2. Kuhn, Max, 2008. "Building Predictive Models in R Using the caret Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 28(i05).
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