scholarly journals A Hybrid Approach Using Oversampling Technique and Cost-Sensitive Learning for Bankruptcy Prediction

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-12 ◽  
Author(s):  
Tuong Le ◽  
Minh Thanh Vo ◽  
Bay Vo ◽  
Mi Young Lee ◽  
Sung Wook Baik
Keyword(s):  
Hybrid Approach ◽  
Class Imbalance ◽  
Bankruptcy Prediction ◽  
Learning Approaches ◽  
Class Imbalance Problem ◽  
Cost Sensitive Learning ◽  
Learning Framework ◽  
Imbalance Problem ◽  
Validation Set ◽  
The Cost

The diagnosis of bankruptcy companies becomes extremely important for business owners, banks, governments, securities investors, and economic stakeholders to optimize the profitability as well as to minimize risks of investments. Many studies have been developed for bankruptcy prediction utilizing different machine learning approaches on various datasets around the world. Due to the class imbalance problem occurring in the bankruptcy datasets, several special techniques would be used to improve the prediction performance. Oversampling technique and cost-sensitive learning framework are two common methods for dealing with class imbalance problem. Using oversampling techniques and cost-sensitive learning framework independently also improves predictability. However, for datasets with very small balancing ratios, combining two above techniques will produce the better results. Therefore, this study develops a hybrid approach using oversampling technique and cost-sensitive learning, namely, HAOC for bankruptcy prediction on the Korean Bankruptcy dataset. The first module of HAOC is oversampling module with an optimal balancing ratio found in the first experiment that will give the best overall performance for the validation set. Then, the second module uses the cost-sensitive learning model, namely, CBoost algorithm to bankruptcy prediction. The experimental results show that HAOC will give the best performance value for bankruptcy prediction compared with the existing approaches.

scholarly journals A New Diversity Technique for Imbalance Learning Ensembles

2018 ◽  
Vol 7 (2.14) ◽  
pp. 478 ◽  
Author(s):  
Hartono . ◽  
Opim Salim Sitompul ◽  
Erna Budhiarti Nababan ◽  
Tulus . ◽  
Dahlan Abdullah ◽  
...  
Keyword(s):  
Hybrid Approach ◽  
Class Imbalance ◽  
Machine Learning Techniques ◽  
Classifier Ensembles ◽  
Classification Problems ◽  
Class Imbalance Problem ◽  
Weighting Method ◽  
Imbalance Problem ◽  
Learning Ensembles ◽  
Imbalance Learning

Data mining and machine learning techniques designed to solve classification problems require balanced class distribution. However, in reality sometimes the classification of datasets indicates the existence of a class represented by a large number of instances whereas there are classes with far fewer instances. This problem is known as the class imbalance problem. Classifier Ensembles is a method often used in overcoming class imbalance problems. Data Diversity is one of the cornerstones of ensembles. An ideal ensemble system should have accurrate individual classifiers and if there is an error it is expected to occur on different objects or instances. This research will present the results of overview and experimental study using Hybrid Approach Redefinition (HAR) Method in handling class imbalance and at the same time expected to get better data diversity. This research will be conducted using 6 datasets with different imbalanced ratios and will be compared with SMOTEBoost which is one of the Re-Weighting method which is often used in handling class imbalance. This study shows that the data diversity is related to performance in the imbalance learning ensembles and the proposed methods can obtain better data diversity.  

Image Classifying Based on Cost-Sensitive Layered Cascade Learning

2014 ◽  
Vol 701-702 ◽  
pp. 453-458
Author(s):  
Feng Huang ◽  
Yun Liang ◽  
Li Huang ◽  
Ji Ming Yao ◽  
Wen Feng Tian
Keyword(s):  
Image Classification ◽  
Class Imbalance ◽  
Classification Performance ◽  
Machine Learning Algorithms ◽  
Class Imbalance Problem ◽  
Data Set ◽  
Misclassification Cost ◽  
Imbalance Problem ◽  
Specific Category ◽  
The Cost

Image Classification is an important means of image processing, Traditional research of image classification usually based on following assumptions: aiming for the overall classification accuracy, sample of different category has the same importance in data set and all the misclassification brings same cost. Unfortunately, class imbalance and cost sensitive are ubiquitous in classification in real world process, sample size of specific category in data set may much more than others and misclassification cost is sharp distinction between different categories. High dimension of eigenvector caused by diversity content of images and the big complexity gap between distinguish different categories of images are common problems when dealing with image Classification, therefore, one single machine learning algorithms is not sufficient when dealing with complex image classification contains the above characteristics. To cure the above problems, a layered cascade image classifying method based on cost-sensitive and class-imbalance was proposed, a set of cascading learning was build, and the inner patterns of images of specific category was learned in different stages, also, the cost function was introduced, thus, the method can effectively respond to the cost-sensitive and class-imbalance problem of image classifying. Moreover, the structure of this method is flexible as the layer of cascading and the algorithm in every stage can be readjusted based on business requirements of image classifying. The result of application in sensitive image classifying for smart grid indicates that this image classifying based on cost-sensitive layered cascade learning obtains better image classification performance than the existing methods.

scholarly journals Combining Hybrid Approach Redefinition-Multiclass Imbalance (HAR-MI) and Hybrid Sampling in Handling Multi-Class Imbalance and Overlapping

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Hartono Hartono ◽  
Erianto Ongko
Keyword(s):  
Sampling Method ◽  
Hybrid Approach ◽  
Class Imbalance ◽  
Classifier Ensembles ◽  
Class Imbalance Problem ◽  
Minority Class ◽  
Imbalance Problem ◽  
Classifier Performance ◽  
R Value ◽  
Hybrid Sampling

Class imbalance is one of the main problems in classification because the number of samples in majority class is far more than the number of samples in minority class.  The class imbalance problem in the multi-class dataset is much more difficult to handle than the problem in the two class dataset. This multi-class imbalance problem is even more complicated if it is accompanied by overlapping. One method that has proven reliable in dealing with this problem is the Hybrid Approach Redefinition-Multiclass Imbalance (HAR-MI) method which is classified as a hybrid approach which combines sampling and classifier ensembles. However, in terms of diversity among classifiers, hybrid approach that combine sampling and classifier ensembles will give better results. HAR-MI delivers excellent results in handling multi-class imbalances. The HAR-MI method uses SMOTE to increase the number of sample in minority class. However, this SMOTE also has a weakness where if there is an extremely imbalanced dataset and a large number of attributes there will be over-fitting. To overcome the problem of over-fitting, the Hybrid Sampling method was proposed. HAR-MI combination with Hybrid Sampling is done to increase the number of samples in the minority class and at the same time reduce the number of noise samples in the majority class. The preprocessing stages at HAR-MI will use the Minimizing Overlapping Selection under Hybrid Sazmpling (MOSHS) method and the processing stages will use Different Contribution Sampling. The results obtained will be compared with the results using Neighbourhood-based undersampling. Overlapping and Classifier Performance will be measured using Augmented R-Value, the Matthews Correlation Coefficient (MCC), Precision, Recall, and F-Value. The results showed that HAR-MI with Hybrid Sampling gave better results in terms of Augmented R-Value, Precision, Recall, and F-Value.

A Novel Hybrid Sampling Algorithm for Solving Class Imbalance Problem in Big Data

2021 ◽  
pp. 2150005
Author(s):  
Khyati Ahlawat ◽  
Anuradha Chug ◽  
Amit Prakash Singh
Keyword(s):  
Big Data ◽  
Class Imbalance ◽  
Support Vector ◽  
Efficiency Gain ◽  
Learning Approaches ◽  
K Nearest Neighbor ◽  
Class Imbalance Problem ◽  
Sampling Algorithm ◽  
Imbalance Problem ◽  
Hybrid Sampling

The uneven distribution of classes in any dataset poses a tendency of biasness toward the majority class when analyzed using any standard classifier. The instances of the significant class being deficient in numbers are generally ignored and their correct classification which is of paramount interest is often overlooked in calculating overall accuracy. Therefore, the conventional machine learning approaches are rigorously refined to address this class imbalance problem. This challenge of imbalanced classes is more prevalent in big data scenario due to its high volume. This study deals with acknowledging a sampling solution based on cluster computing in handling class imbalance problems in the case of big data. The newly proposed approach hybrid sampling algorithm (HSA) is assessed using three popular classification algorithms namely, support vector machine, decision tree and k-nearest neighbor based on balanced accuracy and elapsed time. The results obtained from the experiment are considered promising with an efficiency gain of 42% in comparison to the traditional sampling solution synthetic minority oversampling technique (SMOTE). This work proves the effectiveness of the distribution and clustering principle in imbalanced big data scenarios.

scholarly journals Data Sampling Methods to Deal With the Big Data Multi-Class Imbalance Problem

2020 ◽  
Vol 10 (4) ◽  
pp. 1276 ◽  
Author(s):  
Eréndira Rendón ◽  
Roberto Alejo ◽  
Carlos Castorena ◽  
Frank J. Isidro-Ortega ◽  
Everardo E. Granda-Gutiérrez
Keyword(s):  
Neural Network ◽  
Big Data ◽  
Deep Learning ◽  
Sampling Methods ◽  
Hybrid Approach ◽  
Class Imbalance ◽  
Data Sampling ◽  
Class Imbalance Problem ◽  
Imbalance Problem ◽  
Output Noise

The class imbalance problem has been a hot topic in the machine learning community in recent years. Nowadays, in the time of big data and deep learning, this problem remains in force. Much work has been performed to deal to the class imbalance problem, the random sampling methods (over and under sampling) being the most widely employed approaches. Moreover, sophisticated sampling methods have been developed, including the Synthetic Minority Over-sampling Technique (SMOTE), and also they have been combined with cleaning techniques such as Editing Nearest Neighbor or Tomek’s Links (SMOTE+ENN and SMOTE+TL, respectively). In the big data context, it is noticeable that the class imbalance problem has been addressed by adaptation of traditional techniques, relatively ignoring intelligent approaches. Thus, the capabilities and possibilities of heuristic sampling methods on deep learning neural networks in big data domain are analyzed in this work, and the cleaning strategies are particularly analyzed. This study is developed on big data, multi-class imbalanced datasets obtained from hyper-spectral remote sensing images. The effectiveness of a hybrid approach on these datasets is analyzed, in which the dataset is cleaned by SMOTE followed by the training of an Artificial Neural Network (ANN) with those data, while the neural network output noise is processed with ENN to eliminate output noise; after that, the ANN is trained again with the resultant dataset. Obtained results suggest that best classification outcome is achieved when the cleaning strategies are applied on an ANN output instead of input feature space only. Consequently, the need to consider the classifier’s nature when the classical class imbalance approaches are adapted in deep learning and big data scenarios is clear.

scholarly journals Combining feature selection and hybrid approach redefinition in handling class imbalance and overlapping for multi-class imbalanced

2021 ◽  
Vol 21 (3) ◽  
pp. 1513
Author(s):  
Hartono Hartono ◽  
Erianto Ongko ◽  
Yeni Risyani
Keyword(s):  
Feature Selection ◽  
Learning Algorithm ◽  
Hybrid Approach ◽  
Feature Selection Method ◽  
Class Imbalance ◽  
Poor Performance ◽  
Class Imbalance Problem ◽  
Imbalance Problem ◽  
Classifier Performance ◽  
F Measure

<span>In the classification process that contains class imbalance problems. In addition to the uneven distribution of instances which causes poor performance, overlapping problems also cause performance degradation. This paper proposes a method that combining feature selection and hybrid approach redefinition (HAR) method in handling class imbalance and overlapping for multi-class imbalanced. HAR was a hybrid ensembles method in handling class imbalance problem. The main contribution of this work is to produce a new method that can overcome the problem of class imbalance and overlapping in the multi-class imbalance problem.  This method must be able to give better results in terms of classifier performance and overlap degrees in multi-class problems. This is achieved by improving an ensemble learning algorithm and a preprocessing technique in HAR <span>using minimizing overlapping selection under SMOTE (MOSS). MOSS was known as a very popular feature selection method in handling overlapping. To validate the accuracy of the proposed method, this research use augmented R-Value, Mean AUC, Mean F-Measure, Mean G-Mean, and Mean Precision. The performance of the model is evaluated against the hybrid method (MBP+CGE) as a popular method in handling class imbalance and overlapping for multi-class imbalanced. It is found that the proposed method is superior when subjected to classifier performance as indicate with better Mean AUC, F-Measure, G-Mean, and precision.</span></span>

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