The project is to create a classification model that predicts the chances of a business facing bankruptcy based on the key feature like Industrial Risk, Management Risk, Financial Flexibility, Credibility, Competitiveness, Operating Risk.
- This is a classification project, since the variable to predict is binary (bankruptcy or non-bankruptcy).
- The goal here is to model the probability that a business goes bankrupt from different features.
The data file contains 7 features about 250 companies including the following variables:
- industrial_risk: 0=low risk, 0.5=medium risk, 1=high risk.
- management_risk: 0=low risk, 0.5=medium risk, 1=high risk.
- financial flexibility: 0=low flexibility, 0.5=medium flexibility, 1=high flexibility.
- credibility: 0=low credibility, 0.5=medium credibility, 1=high credibility.
- competitiveness: 0=low competitiveness, 0.5=medium competitiveness, 1=high competitiveness.
- operating_risk: 0=low risk, 0.5=medium risk, 1=high risk.
- class: bankruptcy, non-bankruptcy (target variable).
Acceptance Criterion is We need to deploy the end results using Flask /Streamlit.etc.
- Logistic Regression
- DecisionTreeClassifier
- KNeighborsClassifier
- SupportVectorClassifier
- NaiveBayes
- RandomForest
Using your choice of classifiers, use python to produce several models to predict whether or not it is bankrupt, assessing model performance on a validation partition.
Solution: Used Random Forest Method for a conclusion