The default risk, one of the main risk factors for bonds, should be measured and reflected in the bond yield. Particularly, in the case of financial companies that treat bonds as a major product, failure to properly identify and filter customers' workout status adversely affects returns. This study proposes a two-stage classification algorithm for…

We have maintained the customer grade system that is being implemented to customers with excellent performance through customer segmentation for years. Currently, financial institutions that operate the customer grade system provide similar services based on the score calculation criteria, but the score calculation criteria vary from the financial…

The four-parameter logistic (4PL) Item Response Theory (IRT) model has recently been reconsidered in the literature due to the advances in the statistical modeling software and the recent developments in the estimation of the 4PL IRT model parameters. The current simulation study evaluated the performance of expectation-maximization (EM),…

Many organizations utilize some form of automation in the test assembly process; either fully algorithmic or heuristically constructed. However, one issue with heuristic models is that when the test assembly problem changes the entire model may need to be re-conceptualized and recoded. In contrast, mixed-integer programming (MIP) is a mathematical…