Abstract

In article it is performed comparative of research of quantitative methods for their deficiencies and the evaluations of their adequacy by the example of calculation of probability of bankruptcy. For deliverance of deficiencies of quantitative methods use of qualitative methods was offered, as example was considered method ORKLASS. Using qualitative methods would not only get rid of the deficiencies found, but also would make it possible in addition to the quantitative results get recommendations. Today there are many methods that predict the probability of any phenomena in the economic sector in the face of uncertainty. All of these methods are constructed on mathematical models using numerical values and algebraic operations on them, that is, they quantitative. The most popular and common models, used for methods of the evaluation of probability of bankruptcy, are considered following: Altman Z-score, a revised Z-Score model and Altman model adapting for the non-manufacturers. For example, was calculated probability of bankruptcy “Ukrtelecom” company and all models give inadequate results. It is possible to draw conclusion that it is necessary to think above approach to creation of a new model of forecasting, as deficiencies of quantitative methods can bring to nothing a huge scope of work. The decision of this problem can become use of qualitative methods apart from quantitative, as all deficiencies listed above are not inherent to qualitative methods, hence, at their use of the model to be deprived as well of these deficiencies. Additionally, use of qualitative methods will allow not only to give quantitative result, and possible problem solving variants, if such is.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.