At the core of every decision-making task are two simple features; outcome values and probabilities. Over the past few decades, many models have developed from von Neumann’ and Morgenstern’s (1945) Expected Utility Theory to provide a thorough account of people’s subjective value and probability weighting functions. In particular, one such model that has been largely successful in both Psycholo...

Objective A great number of customers spend much more time than expected on shopping because of a lot of reasons like variety in products. Thus, they may feel confused and disappointed. Such confusion can influence purchasing procedure and determine purchasing behavior. Such customers fail to purchase wisely and may face difficulty choosing appropriate and reasonable products. However, if the ...

The Basel II Accord pointed out benefits of credit risk management through internal models to estimate Probability of Default (PD). Banks use default predictions to estimate the loan applicants’ PD. However, in practice, PD is not useful and banks applied credit scorecards for their decision making process. Also the competitive pressures in lending industry forced banks to use profit scorecards...

A confusion matrix (Kohavi and Provost, 1998) contains information about actual and predicted classifications done by a classification system. Performance of such systems is commonly evaluated using the data in the matrix. The following table shows the confusion matrix for a two class classifier. The entries in the confusion matrix have the following meaning in the context of our study: ● a is ...

It has been argued by Shepard that there is a robust psychological law that relates the distance between a pair of items in psychological space and the probability that they will be confused with each other. Specifically, the probability of confusion is a negative exponential function of the distance between the pair of items. In experimental contexts, distance is typically defined in terms of ...

This paper presents two probabilistic text retrieval methods speci cally designed to carry out a full-text search of Japanese documents containing OCR errors. By searching for any query term under the premise that errors exist in recognized text, the presented methods can tolerate such errors, and therefore manual post-editing is not required after OCR recognition. In the applied approach, conf...