Graphics Reference
In-Depth Information
and plotted by XploRe as a small filled quadrangle. he quadrangles evenly cover the
whole area, giving a continuous PD representation. Contour lines can also be added
to the graph, as illustrated in Fig.
.
.
Conclusion
4.7
In this chapter we demonstrated the application of graphical tools to variable selec-
tion, data visualisation and financial information representation, and we discussed
essential aspects of graphical analysis, such as colour coding. We believe that graph-
ical analysis will become increasingly important as nonparametric models, such as
SVM, become more and more popular. On the other hand, graphical representa-
tion can aid the acceptance of nonparametric models in various areas, such as fi-
nance, medicine, and sound and image processing. he application of graphical rep-
resentation will contribute to the development of these areas, since nonlinear non-
parametric models are better at representing reality and provide higher forecasting
accuracy.
Acknowledgement.
he authors are grateful to the Deutsche Bundesbank for providing ac-
cesstotheuniquedatabaseofthefinancialstatementsofGermancompanies.hedataanalysis
took place on the premises of the Deutsche Bundesbank in Frankfurt. he work of R.A. Moro
wasfinancially supportedby the German Academic Exchange Service (DAAD) andDeutsche
Bundesbank. We also acknowledge the support of the German Research Foundation (DFG)
through the SFB
of Humboldt-Universität, Berlin, in writing this paper.
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