The four remaining classes correspond to four riskier classes of firms with three months, six months, nine months and one year or more delay of payment, respectively. The naive Bayes classifier is particularly appropriate when the dimensionality of the inputs is high. Loan default risk or credit risk evaluation is important to financial institutions which provide loans to businesses and individuals. Previous works look at business failure prediction from the mid-term and long-term prospects failure vs non-failure. The presence of asymmetric information normally leads to moral hazard and adverse selection problems. In fact, the quantitative method known as credit scoring has been developed for the credit assessment problem Yang, Moonasar emphasized that one of the basic tasks which any bank has to deal with, in the current competitive and turbulent business environment, is to reduce its credit risk. The ROC curve: output software Tanagra. Adverse selection refers to a situation in which the borrower has relevant information that the lender lacks or vice versa about the quality of the project before the transaction occurs.
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