An Automatic Interaction Detection Hybrid Model for Bankcard Response Classification

Data mining techniques have numerous applications in bankcard response modeling. Logistic regression has been used as the standard modeling tool in the financial industry because of its almost always desirable performance and its interpretability. In this paper, we propose a hybrid bankcard response model, which integrates decision tree-based chi-square automatic interaction detection (CHAID) into logistic regression. In the first stage of the hybrid model, CHAID analysis is used to detect the possible potential variable interactions. Then in the second stage, these potential interactions are served as the additional input variables in logistic regression. The motivation of the proposed hybrid model is that adding variable interactions may improve the performance of logistic regression. Theoretically, all possible interactions could be added in logistic regression and significant interactions could be identified by feature selection procedures. However, even the stepwise selection is very time-consuming when the number of independent variables is large and tends to cause the p \u3e\u3e n problem. On the other hand, using CHAID analysis for the detection of variable interactions has the potential to overcome the above-mentioned drawbacks. To demonstrate the effectiveness of the proposed hybrid model, it is evaluated on a real credit customer response data set. As the results reveal, by identifying potential interactions among independent variables, the proposed hybrid approach outperforms the logistic regression without searching for interactions in terms of classification accuracy, the area under the receiver operating characteristic curve (ROC), and Kolmogorov-Smirnov (KS) statistics. Furthermore, CHAID analysis for interaction detection is much more computationally efficient than the stepwise search mentioned above and some identified interactions are shown to have statistically significant predictive power on the target variable. Last but not least, the customer profile created based on the CHAID tree provides a reasonable interpretation of the interactions, which is required by regulations of the credit industry. Hence, this study provides an alternative for handling bankcard classification tasks

The Use of Transferable Permits in the Transport Sector

This report focuses on the potential use of domestic transferable permit (TPs) systems in the transport sector, in order to address the issue of mobility needs management and especially the reductions of airborne pollution and greenhouse gas emissions. Firstly the context of the transport sector is briefly reviewed, the main arguments for or against the use of TPs in the sector are analysed and relevant areas are identified. Secondly four case studies of past, present or possible future permits systems are presented and evaluated. The main conclusions are: TPs applied to mobile sources are technically feasible at acceptable financial costs for protecting sensitive geographic areas. TPs schemes applied to automakers for unit vehicle emissions are also viable. Clarity, simplicity in target and pragmatism in scheme design help for their success. Regarding the broader GHG issue end-user TPs would currently involve significant administrative costs when compared with fuel tax system. Given the social resistance encountered by increase in fuel taxes in several countries, end-user TPs with free allocation may intrinsically have potential greater effectiveness and acceptance and should be thoroughly evaluated case-by-case as an alternative.Domestic transferable permits ; Emissions reduction ; Mobile sources ; Transport Sector

Advanced analytical methods for fraud detection: a systematic literature review

The developments of the digital era demand new ways of producing goods and rendering services. This fast-paced evolution in the companies implies a new approach from the auditors, who must keep up with the constant transformation. With the dynamic dimensions of data, it is important to seize the opportunity to add value to the companies. The need to apply more robust methods to detect fraud is evident. In this thesis the use of advanced analytical methods for fraud detection will be investigated, through the analysis of the existent literature on this topic. Both a systematic review of the literature and a bibliometric approach will be applied to the most appropriate database to measure the scientific production and current trends. This study intends to contribute to the academic research that have been conducted, in order to centralize the existing information on this topic

State of the Art in Face Recognition

Notwithstanding the tremendous effort to solve the face recognition problem, it is not possible yet to design a face recognition system with a potential close to human performance. New computer vision and pattern recognition approaches need to be investigated. Even new knowledge and perspectives from different fields like, psychology and neuroscience must be incorporated into the current field of face recognition to design a robust face recognition system. Indeed, many more efforts are required to end up with a human like face recognition system. This book tries to make an effort to reduce the gap between the previous face recognition research state and the future state

Combining SOA and BPM Technologies for Cross-System Process Automation

This paper summarizes the results of an industry case study that introduced a cross-system business process automation solution based on a combination of SOA and BPM standard technologies (i.e., BPMN, BPEL, WSDL). Besides discussing major weaknesses of the existing, custom-built, solution and comparing them against experiences with the developed prototype, the paper presents a course of action for transforming the current solution into the proposed solution. This includes a general approach, consisting of four distinct steps, as well as specific action items that are to be performed for every step. The discussion also covers language and tool support and challenges arising from the transformation

“Think of it as Money”: A History of the VISA Payment System, 1970–1984

This dissertation is a historical case study of the payment system designed, built, and operated by Visa International Services Association (VISA, hereafter “Visa”). The system is analyzed as a sociotechnical one, consisting of both social and technical elements that mutually constitute and shape one another. The historical narrative concentrates on the period of 1970 to 1984, which roughly corresponds to the tenure of the system’s founder and first CEO, Dee Ward Hock. It also focuses primarily upon the events that took place within the United States. After establishing a theoretical and historical context, I describe why and how the organization now known as Visa was formed. I then explain how the founder and his staff transformed the disintegrated, paper-based credit card systems of the 1960s into the unified, electronic value exchange system we know today. Special attention is paid throughout this narrative to the ways in which the technologies were shaped by political, legal, economic, and cultural forces, as well as the ways in which the system began to alter those social relations in return. In the final chapter, I offer three small extensions to the literature on payment systems, cooperative networks, and technology and culture