Fig. 4
From: A dynamic credit risk assessment model with data mining techniques: evidence from Iranian banks
Fixed short memory time window. A dynamical modeling framework for credit risk assessment was recently proposed by Maria Rocha Sousa et al. (Sousa & Gama, 2016) that extends the prevailing models developed on the historical data static settings. This model that was inspired by the principle of films uses “a sequence of snapshots, rather than a single photograph”. The model deals with the defaults in two ways. This Fig is about the short memory time window that forgets the past because the researchers believe that there is a low correlation between ongoing defaults and past instances. As you see at the Figure, learning 2 includes data for month2 and learning 3 includes the data for Months 3