Company Bankruptcy Prediction

Welcome to the second part of my classification project. Continuing from my introduction to company bankruptcy prediction, I will now explore how I handled the dataset and evaluate various classification techniques. To evaluate the efficacy of different classification techniques, we determine the error rate for the training and test data, which is the ratio of

The Classification Problem

The Classification Problem is a vital area of data science, involving the use of machine learning algorithms in grouping data together based upon certain criteria. Each data point has a ‘class label,’ which assigns certain properties to them. For example, in a two-class problem, each point may represent a particular bank transaction labelled as fraudulent,

Lanchester’s Square Law

I recently came across an intriguing problem in calculus with real-world implications, and I thought it would be interesting to share it with you in a bit more detail. Lanchester’s Square Law involves a set of differential equations that model the relative strengths and interaction of two armies. Devised during WW1, it was used to

Hedging and the Black Scholes Model Part 3

We are finally here – the Black Scholes Model! Perhaps the most famous differential equation in finance, it is the most widely used model for the pricing of options based upon several key parameters.  The key assumption is that asset returns follow a lognormal distribution. The key difference from a normal distribution is that asset

Networked Epidemiology for COVID-19

Predicting the spread of COVID has become a key aim for epidemiologists across the world, and understanding how it spreads throughout a population is key to this. Using network modelling, scientists can predict the future behaviour of an epidemic and allocate resources in accordance with simulations. When faced with such a daunting task, one must

The Beauty of Fourier Series

My first post on the blog! Here we will analyse a particular topic that I found intriguing during my calculus studies: Fourier Series. These have wide-ranging applications from engineering to finance. Firstly, we will examine why we need Fourier Series. Throughout nature we observe phenomena involving oscillations and waveforms. In cases such as simple harmonic