Credibility models with dependence induced by common effects and their applications in bank branch performance prediction
by Mahdi Ebrahimzadeh, Noor Akma Ibrahim, Abdul Aziz Jemain, Adem Kilicman
J. for International Business and Entrepreneurship Development (JIBED), Vol. 5, No. 4, 2011

Abstract: One of the important issues in banking affairs is to predict performance of bank branches. While we know some of the factors that influence predicted performance, some unobservable factors called 'error' or 'latent and unobservable variables' in statistics, always exert some effect on prediction. In this paper, for the first time in studies on prediction of performance of bank branches, we use credibility theory to model the effects of unobservable factors induced by 'common effects'. The models are then used to predict expected performance for a number of branches given the history of all observable performances. We give illustrative example to demonstrate the ideas.

Online publication date: Sat, 28-Feb-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the J. for International Business and Entrepreneurship Development (JIBED):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com