Boosted Decision Trees for Credit Scoring

2022 ◽  
pp. 270-292
Author(s):  
Luca Di Persio ◽  
Alberto Borelli

The chapter developed a tree-based method for credit scoring. It is useful because it helps lenders decide whether to grant or reject credit to their applicants. In particular, it proposes a credit scoring model based on boosted decision trees which is a technique consisting of an ensemble of several decision trees to form a single classifier. The analysis used three different publicly available datasets, and then the prediction accuracy of boosted decision trees is compared with the one of support vector machines method.

Author(s):  
Ognjen Radović ◽  
Srđan Marinković ◽  
Jelena Radojičić

Credit scoring attracts special attention of financial institutions. In recent years, deep learning methods have been particularly interesting. In this paper, we compare the performance of ensemble deep learning methods based on decision trees with the best traditional method, logistic regression, and the machine learning method benchmark, support vector machines. Each method tests several different algorithms. We use different performance indicators. The research focuses on standard datasets relevant for this type of classification, the Australian and German datasets. The best method, according to the MCC indicator, proves to be the ensemble method with boosted decision trees. Also, on average, ensemble methods prove to be more successful than SVM.


2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Yudong Li ◽  
Zhongke Feng ◽  
Shilin Chen ◽  
Ziyu Zhao ◽  
Fengge Wang

The study of forest fire prediction is of great environmental and scientific significance. China’s Guangxi Autonomous Region has a high incidence rate of forest fires. At present, there is little research on forest fires in this area. The application of the artificial neural network and support vector machines (SVM) in forest fire prediction in this area can provide data for forest fire prevention and control in Guangxi. In this paper, based on Guangxi’s 2010–2018 satellite monitoring hotspot data, meteorology, terrain, vegetation, infrastructure, and socioeconomic data, the researchers determined the main forest fire driving factors in Guangxi. They used feature selection and backpropagation neural networks and radial basis SVM to build forest fire prediction models. Finally, the researchers use the accuracy, precision, and area under the characteristic curve (ROC-AUC) and other indicators to evaluate the predictive performance of the two models. The results showed that the prediction accuracy of the BP neural network and SVM is 92.16% and 89.89%, respectively. As both results are over 85%, the requirements of prediction accuracy is met. These results can be used for forest fire prediction in the Guangxi Autonomous Region. Specifically, the accuracy of the BP neural network was 0.93, which was higher than that of the SVM model (0.89); the recall of the SVM model was 0.84, which was lower than the BANN model (0.92), and the AUC value of the SVM model was 0.95, which was lower than the BP neural network model. The obtained results confirm that the BP neural network model can provide more prediction accuracy than support vector machines and is therefore more suitable for forest fire prediction in Guangxi, China. This research provides the necessary theoretical basis and data support for application in the field of forestry of the Guangxi Autonomous Region, China.


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