Neural computing: theory and practice
Neural computing: theory and practice
Assessing the value of information
ICIS '89 Proceedings of the tenth international conference on Information Systems
ICIS '89 Proceedings of the tenth international conference on Information Systems
Complete prepayment models for mortgage-backed securities
Management Science - Focused issue on financial modeling
Information Analysis
Simulation Modeling and Analysis
Simulation Modeling and Analysis
An Empirical Analysis of Data Requirements for Financial Forecasting with Neural Networks
Journal of Management Information Systems
Expert Systems with Applications: An International Journal
Moving Intervals for Nonlinear Time Series Forecasting
Proceedings of the 2010 conference on Artificial Intelligence Research and Development: Proceedings of the 13th International Conference of the Catalan Association for Artificial Intelligence
Methodological triangulation using neural networks for business research
Advances in Artificial Neural Systems
Improving financial data quality using ontologies
Decision Support Systems
How Do Actuaries Use Data Containing Errors?: Models of Error Detection and Error Correction
Information Resources Management Journal
Information Resources Management Journal
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Under circumstances where data quality may vary (due to inaccuracies or lack of timeliness, for example), knowledge about the potential performance of alternate predictive models can help a decision maker to design a business-value-maximizing information system. This paper examines a real-world example from the field of finance to illustrate a comparison of alternative modeling tools. Two modeling alternatives are used in this example: regression analysis and neural network analysis. There are two main results: (1) Linear regression outperformed neural nets in terms of forecasting accuracy, but the opposite was true when we considered the business value of the forecast. (2) Neural net-based forecasts tended to be more robust than linear regression forecasts as data accuracy degraded. Managerial implications for financial risk management of mortgage-backed security portfolios are drawn from the results.