The Taguchi's orthogonal array is based on a mathematical model of factorial designs. This paper investigates the effects of four parameters in Probability of Default (PD) using BlackScholes model (BSM) for call option at one period by considering asset value , firm's debt , expected growth and the volatility . The main aim is to determine which parameters affect mostly on PD of a firm. The experiment is based on the orthogonal array L9 in which the four parameters are varied at three levels. Finally, the ANOM is used to describe the best combination and ANOVA is implemented to measure the contribution of the given independent variables.

The probability of default (PD) is the essential credit risks in the finance world. It provides an estimate of the likelihood that a borrower will be unable to meet its debt obligations. Purpose: This paper computes the probability of default (PD) of utilizing marketbased data which outlines their convenience for monetary reconnaissance. There are numerous models that provide assistance to analyze credit risks, for example, the probability of default, migration risk, and loss gain default. Every one of these models is vital for estimating credit risk, however, the most imperative model is PD, i.e., employed in this paper. Design/methodology/approach: In this paper, the Black-Scholes Model for European Call Option (BSM-CO) is utilized to gauge the PD of the Jammu and Kashmir Bank, Bank of Baroda, Indian Overseas Bank, and Canara Bank. The information has been taken from a term of 5 years on a yearly premise from 2012 to 2016. This paper demonstrates how d 2 in Black Scholes displayed help in assessing the PD of the various firms. Findings: The fundamental findings of this paper are whether there are any mean contrasts between the mean differences of PD between the organizations utilizing ANOVA and the Tukey strategy.

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A partnership offers a lot of advantages which include long term stability and more capitals. However, such an arrangement comes with some disadvantages which include loss of autonomy, liabilities, as well as sharing of profit and emotional issues. Among the many factors that need consideration in a partnership, the one factor of prime importance is the evaluation of the prospective partner so as to ensure he/she is a good match. The purpose of this study is to investigate and analyze the effects of factors as, among others, the loss of autonomy and liabilities on the functioning of partnership based businesses. In this study, taking into account data collected from 50 enterprises in India, statistical methodologies of ANOVA and multiple comparison tests were used for factor comparisons at the significance level of 5%. Results have shown that in most of the partnership businesses the partners were satisfied with each other, except for emotional issues. It would be then important to deeply explore such issues in order to minimize eventual damages caused by such disadvantage.

The distance to default (DD) and the probability of default (PD) are the essential credit risks in the finance world. It provides an estimate of the likelihood that a borrower will be unable to meet its debt obligations. It is crucial to know which parameter effects more on DD and PD so that investor will prevent future risks. Purpose: The purpose of this study is to investigate the effects of four parameters (asset value of firm V, value of debt X, interest rate r and the volatility of asset σ at one period) on DD and PD. Design/methodology/approach: The Black Scholes model is used to estimate the DD and PD. To explore the effects of parameters, the author used Taguchi's L27 orthogonal array, analysis of variance (ANOVA) and analysis of mean (ANOM), and the analysis will carry out using MINITAB software. The effect of parameters will be discussed with the main effect plot and the average response on a response plot showing the best outcomes. Findings: ANOM identified the optimal combination where the DD is a maximum, and the PD is a minimum. The percentage contribution of each input factor on DD and PD was estimated by conducting ANOVA. The above two (DD and PD) exists an inverse relationship. Research limitations/implications: The rank or percentage contribution will vary with change in the data set.