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The overall accuracy of Altman re-estimated model on estimation sample is 96.923 which correctly classify 98.462%% of distressed and 95.385 % of non-distressed firms.
Panel-A of Table 12 shows predictive accuracy of re-estimated models is higher than original model on estimation sample.
The long range accuracy of new model on estimation sample are 98.46 and 86.92 % for one year before bankruptcy and two years before bankruptcy respectively.
The Type II error is very high in case of Altman original model on estimation sample.
Table 8 shows the profile of variables used in Altman model on estimation and holdout sample.
Table 13 reports the long-range accuracy results of new model on estimation and hold-out sample.
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The results presented excellent accuracy in terms of the oil recovery factor, the cumulative CO2 production and the CO2 storage network model on estimations with overall root mean square errors of less than 3%, while the errors were much greater for unqualified models of the oil rate and GOR.
This section analyzed the findings of the original, re-estimated and newly proposed models on estimation and holdout samples.
Predictive accuracy of all the original, re-estimated and newly proposed models on estimation and holdout sample is reported in Table 12.
Panel-A of the Table 12 reports the predictive accuracy of original, re-estimated and newly proposed models on estimation sample.
"Plant-friendly" issues are also discussed and illustrated in the identification and control of a CSTR simulation via "Model-on-Demand" estimation.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com