Abstract

From the design in 1935, new Producers Home Government (FmHA) possess examined applications based on projected installment feature. Due to dramatically expanding farm loans problems and criticisms for the usa General Accounting Office (GAO) of agency’s borrowing from the bank evaluation process, this new FmHA regarding the later 1980s establish a credit rating program that have four univariate input things (GAO, 1989, p. 38). Eventually, the newest FmHA was not pleased with its the newest borrowing from the bank examination design and you may employed Price Waterhouse (PW) to create a very discerning you to definitely. The fresh PW design, as well, yet not, spends a mixture of univariate scores (PW, 1991 , p. ES-1). Our research, and this incorporates real Ranch and you may Domestic Package (FHP) research, develops and compares about three multivariate habits also a normal the very least squares (OLS) model, a good logistic regression (logit) design, and you will an inherited-algorithm-derived neural system design (NNM).