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 purpose of this paper is to briefly introduce two most common applications of multiple group item response theory (IRT) models, namely detecting differential item functioning (DIF) analysis and nonequivalent group score linking with a simultaneous calibration. We illustrate how to conduct those analyses using the "Stata" item…