Distill-and-Compare: Auditing Black-Box Models Using Transparent Model Distillation

Black-box risk scoring models permeate our lives, yet are typically proprietary or opaque. We propose Distill-and-Compare, a model distillation and comparison approach to audit such models. To gain insight into black-box models, we treat them as teachers, training transparent student models to mimic the risk scores assigned by black-box models. We compare the student model trained with distillation to a second un-distilled transparent model trained on ground-truth outcomes, and use differences between the two models to gain insight into the black-box model. Our approach can be applied in a realistic setting, without probing the black-box model API. We demonstrate the approach on four public data sets: COMPAS, Stop-and-Frisk, Chicago Police, and Lending Club. We also propose a statistical test to determine if a data set is missing key features used to train the black-box model. Our test finds that the ProPublica data is likely missing key feature(s) used in COMPAS.Comment: Camera-ready version for AAAI/ACM AIES 2018. Data and pseudocode at https://github.com/shftan/auditblackbox. Previously titled "Detecting Bias in Black-Box Models Using Transparent Model Distillation". A short version was presented at NIPS 2017 Symposium on Interpretable Machine Learnin

Financial evaluation of mental accounting

Mental accounting, defined as a set of cognitive processes that allows the organization of financial activities and facilitates money management; First of all, it helps people to compare the returns / incomes in return for their expenses and the costs to be incurred, and enables them to make decisions through a different mental account for the income tax or value added tax etc. they will pay in their investments. In the process of mental accounting, self-employed taxpayers may consider the correct declaration of tax, but they can also make different tax calculations, and even obtain information in consultation with their professionals. It is known that some professionals use mental accounting themselves by helping self-employed people fondly. It is impossible today to check whether mental accounting is related to tax knowledge, business and personality traits, and the degree of association with the intended tax behavior. The conclusions have been reached by a study in this regard; - While some taxpayers mentally separate taxes from turnover, others are not (integrators ) , - Where there are small differences in mental accounting between income tax and VAT, and, - Confirmatory factor analysis, tax information and mental accounting are different structures (Journal of Economic Psychology Nr. 70 , January 2019, P: 125-139). On the other hand, mental accounting is a strategy used in controlling personal spending, consumption, and investments as a cognitive set of operations in monitoring one's financial/financial business (=activity) and transactions. These are classified in mental accounts, meaning that individuals monitor all of their expenses separately and include the process of personal decision making, correction, control or abandonment of decisions. In particular, when multiple options are encountered, they are evaluated jointly-the results of different decisions are combined or evaluated separately. This depends on the emotional and intellectual structures of the person, along with the risk and expenditure criteria that the person undertakes. Because the decision is between sentimentality and thought, and results in rational-real or irrational-non-real results. In fact, they have a positive relationship with education, financial knowledge, money management and tax awareness in mental accounting. A consumer or investor/businessman in the decision process, including most accounting and Finance, Management Accounting, Financial Accounting and tax accounting are associated with, and are affected by them and affect them. These aspects are quite interesting.peer-reviewe