A Case-based Reasoning Approach for Corporate Bond Rating
Kyung-Shik Shin, Ingoo Han · 1998
Case-based reasoning is a problem solving technique by re-using past cases and experiences to find solutions to problems. The central tasks that CBR methods have to deal with are to identify the current problem situation, find a past case similar to the new one, use that case to suggest a solution to the current problem, evaluate the proposed solution, and update the system by learning from this experience. Among these tasks, one of the critical issues in building useful CBR system lies in indexing of cases that supports the retrieval of relevant cases to the problem. This paper investigates the effectiveness of integrated approach using induction techniques to case indexing process for business classification tasks. We suggest this approach as a unifying framework to combine general domain knowledge and case specific knowledge. The proposed approach is demonstrated by applications to corporate bond rating.