A Comparison of Likelihood Ratio, Wald, and Rao Tests

1989 ◽  
pp. 465-471 ◽  
Author(s):  
Albert Madansky
Keyword(s):  
Likelihood Ratio

A likelihood ratio test for detecting patterns of disease-marker association

1997 ◽  
Vol 61 (4) ◽  
pp. 335-350 ◽  
Author(s):  
A. P. MORRIS ◽  
J. C. WHITTAKER ◽  
R. N. CURNOW
Keyword(s):  
Likelihood Ratio ◽  
Likelihood Ratio Test ◽  
Ratio Test ◽  
Disease Marker

Predicting Fetal Chromosome Anomalies in the First Trimester Using Pregnancy Associated Plasma Protein-A: A Comparison of Statistical Methods

1993 ◽  
Vol 32 (02) ◽  
pp. 175-179 ◽  
Author(s):  
B. Brambati ◽  
T. Chard ◽  
J. G. Grudzinskas ◽  
M. C. M. Macintosh
Keyword(s):  
Logistic Regression ◽  
General Population ◽  
Likelihood Ratio ◽  
False Positive ◽  
False Positive Rate ◽  
Ratio Method ◽  
Detection Rates ◽  
Gaussian Distributions ◽  
Positive Rate ◽  
Likelihood Ratio Method

Abstract:The analysis of the clinical efficiency of a biochemical parameter in the prediction of chromosome anomalies is described, using a database of 475 cases including 30 abnormalities. A comparison was made of two different approaches to the statistical analysis: the use of Gaussian frequency distributions and likelihood ratios, and logistic regression. Both methods computed that for a 5% false-positive rate approximately 60% of anomalies are detected on the basis of maternal age and serum PAPP-A. The logistic regression analysis is appropriate where the outcome variable (chromosome anomaly) is binary and the detection rates refer to the original data only. The likelihood ratio method is used to predict the outcome in the general population. The latter method depends on the data or some transformation of the data fitting a known frequency distribution (Gaussian in this case). The precision of the predicted detection rates is limited by the small sample of abnormals (30 cases). Varying the means and standard deviations (to the limits of their 95% confidence intervals) of the fitted log Gaussian distributions resulted in a detection rate varying between 42% and 79% for a 5% false-positive rate. Thus, although the likelihood ratio method is potentially the better method in determining the usefulness of a test in the general population, larger numbers of abnormal cases are required to stabilise the means and standard deviations of the fitted log Gaussian distributions.

Regression model of assessment of customer solvency and banking risks in the process of lending

2019 ◽  
pp. 69-73
Author(s):  
Zoryna Yurynets ◽  
Rostyslav Yurynets ◽  
Nataliya Kunanets ◽  
Ivanna Myshchyshyn
Keyword(s):  
Logistic Regression ◽  
Discriminant Analysis ◽  
Regression Model ◽  
Likelihood Ratio ◽  
Credit Scoring ◽  
Bank Loans ◽  
Management Decisions ◽  
Computer Data ◽  
Proposed Model ◽  
Loan Risk

In the current conditions of economic development, it is important to pay attention to the study of the main types of risks, effective methods of evaluation, monitoring, analysis of banking risks. One of the main approaches to quantitatively assessing the creditworthiness of borrowers is credit scoring. The objective of credit scoring is to optimize management decisions regarding the possibility of providing bank loans. In the article, the scientific and methodological provisions concerning the formation of a regression model for assessing bank risks in the process of granting loans to borrowers has been proposed. The proposed model is based on the use of logistic regression tools, discriminant analysis with the use of expert evaluation. During the formation of a regression model, the relationship between risk factors and probable magnitude of loan risk has been established. In the course of calculations, the coefficient of the individual's solvency has been calculated. Direct computer data preparation, including the calculation of the indicators selected in the process of discriminant analysis, has been carried out in the Excel package environment, followed by their import into the STATISTICA package for analysis in the “Logistic regression” sub-module of the “Nonlinear evaluation” module. The adequacy of the constructed model has been determined using the Macfaden's likelihood ratio index. The calculated value of the Macfaden's likelihood ratio index indicates the adequacy of the constructed model. The ability to issue loans to new clients has been evaluated using a regression model. The conducted calculations show the possibility of granting a loan exclusively to the second and third clients. The offered method allows to conduct assessment of client's solvency and risk prevention at different stages of lending, facilitates the possibility to independently make informed decisions on credit servicing of clients and management of a loan portfolio, optimization of management decisions in banks. In order for a loan-based model to continue to perform its functions, it must be periodically adjusted.

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