C4.5 Decision Tree Enhanced with AdaBoost Versus Multilayer Perceptron for Credit Scoring Modeling

Author(s):  
Thitimanan Damrongsakmethee ◽  
Victor-Emil Neagoe
2007 ◽  
Vol 4 (1) ◽  
pp. 183-197 ◽  
Author(s):  
Efstathios Kirkos ◽  
Charalambos Spathis ◽  
Alexandros Nanopoulos ◽  
Yannis Manolopoulos

Data Mining methods can be used in order to facilitate auditors to issue their opinions. Numerous of these methods have not yet been tested on the purpose of discriminating cases of qualified opinions. In this study, we employ three Data Mining classification techniques to develop models capable of identifying qualified auditors' reports. The techniques used are C4.5 Decision Tree, Multilayer Perceptron Neural Network, and Bayesian Belief Network. The sample contains 450 publicly listed, nonfinancial U.K. and Irish firms. The input vector is composed of one qualitative and several quantitative variables. The three developed models are compared in terms of their performance. Additionally, variables that are associated with qualified reports and can be used as indicators are also revealed. The results of this study can be useful to internal and external auditors and company decision-makers.


2020 ◽  
Vol 98 (Supplement_4) ◽  
pp. 126-127
Author(s):  
Lucas S Lopes ◽  
Christine F Baes ◽  
Dan Tulpan ◽  
Luis Artur Loyola Chardulo ◽  
Otavio Machado Neto ◽  
...  

Abstract The aim of this project is to compare some of the state-of-the-art machine learning algorithms on the classification of steers finished in feedlots based on performance, carcass and meat quality traits. The precise classification of animals allows for fast, real-time decision making in animal food industry, such as culling or retention of herd animals. Beef production presents high variability in its numerous carcass and beef quality traits. Machine learning algorithms and software provide an opportunity to evaluate the interactions between traits to better classify animals. Four different treatment levels of wet distiller’s grain were applied to 97 Angus-Nellore animals and used as features for the classification problem. The C4.5 decision tree, Naïve Bayes (NB), Random Forest (RF) and Multilayer Perceptron (MLP) Artificial Neural Network algorithms were used to predict and classify the animals based on recorded traits measurements, which include initial and final weights, sheer force and meat color. The top performing classifier was the C4.5 decision tree algorithm with a classification accuracy of 96.90%, while the RF, the MLP and NB classifiers had accuracies of 55.67%, 39.17% and 29.89% respectively. We observed that the final decision tree model constructed with C4.5 selected only the dry matter intake (DMI) feature as a differentiator. When DMI was removed, no other feature or combination of features was sufficiently strong to provide good prediction accuracies for any of the classifiers. We plan to investigate in a follow-up study on a significantly larger sample size, the reasons behind DMI being a more relevant parameter than the other measurements.


Author(s):  
N. REN ◽  
M. ZARGHAM ◽  
S. RAHIMI

Stock selection rules are extensively utilized as the guideline to construct high performance stock portfolios. However, the predictive performance of the rules developed by some economic experts in the past has decreased dramatically for the current stock market. In this paper, C4.5 decision tree classification method was adopted to construct a model for stock prediction based on the fundamental stock data, from which a set of stock selection rules was derived. The experimental results showed that the generated rules have exceptional predictive performance. Moreover, it also demonstrated that the C4.5 decision tree classification model can work efficiently on the high noise stock data domain.


2013 ◽  
Vol 397-400 ◽  
pp. 2296-2300 ◽  
Author(s):  
Fei Shuai ◽  
Jun Quan Li

In current, there are complex relationship between the assets of information security product. According to this characteristic, we propose a new asset recognition algorithm (ART) on the improvement of the C4.5 decision tree algorithm, and analyze the computational complexity and space complexity of the proposed algorithm. Finally, we demonstrate that our algorithm is more precise than C4.5 algorithm in asset recognition by an application example whose result verifies the availability of our algorithm.Keywordsdecision tree, information security product, asset recognition, C4.5


2020 ◽  
Author(s):  
Luiz Felipe Vercosa ◽  
Rodrigo Lira ◽  
Rodrigo Monteiro ◽  
Kleber Silva ◽  
Jailson Magalhaes ◽  
...  

Standard features used for Credit Scoring includes mainly registration and financial data from customers. However, exploring new features is of great interest for financial companies, since slight improvements in the person score directly impact the company revenue. In this work, we categorize features from open credit scoring datasets and compare them with the features found in a real company dataset. The company dataset contains unusual feature groups such as historical, geolocation, web behavior, and demographic data. We performed bivariate tests using the Kolmogorov-Smirnov metric and features to assess the performance of the particular feature groups. We also generated a score of good payer by using AdaBoost, Multilayer Perceptron, and XGBoost algorithms. Then, we analyzed the results with different metrics and compared them with the real company results. Our main finding was that these features added a small improvement to current datasets. We also identified the most promising feature groups and noticed that the tuned XGBoost performed better than the company solution in three out of four deployed metrics.


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