Predicting Risk through Artificial Intelligence Based on Machine Learning Algorithms: A Case of Pakistani Nonfinancial Firms

Table 1

Error measurement using KNN, naïve Bayes, decision tree, and random forest.

Technique	RMSE	MAE
Debt-to-asset ratio KNN	0.17256	0.08551
Debt-to-asset ratio naïve Bayes	0.25266	0.20181
Debt-to-asset ratio decision tree	0.09421	0.03592
Debt-to-asset ratio random forest 2	0.08171	0.03472
Debt-to-asset ratio random forest 3	0.09916	0.036
Debt-to-asset ratio random forest 5	0.08907	0.03084
Debt-to-asset ratio random forest 7	0.08312	0.03288
Debt-to-asset ratio random forest 10	0.08093	0.03134
Debt-to-asset ratio random forest 15	0.08365	0.03049