QCBA: Postoptimization of Quantitative Attributes in Classifiers based on Association Rules

The need to prediscretize numeric attributes before they can be used in association rule learning is a source of inefficiencies in the resulting classifier. This paper describes several new rule tuning steps aiming to recover information lost in the discretization of numeric (quantitative) attributes, and a new rule pruning strategy, which further reduces the size of the classification models. We demonstrate the effectiveness of the proposed methods on postoptimization of models generated by three state-of-the-art association rule classification algorithms: Classification based on Associations (Liu, 1998), Interpretable Decision Sets (Lakkaraju et al, 2016), and Scalable Bayesian Rule Lists (Yang, 2017). Benchmarks on 22 datasets from the UCI repository show that the postoptimized models are consistently smaller -- typically by about 50% -- and have better classification performance on most datasets

An academic review: applications of data mining techniques in finance industry

With the development of Internet techniques, data volumes are doubling every two years, faster than predicted by Moore’s Law. Big Data Analytics becomes particularly important for enterprise business. Modern computational technologies will provide effective tools to help understand hugely accumulated data and leverage this information to get insights into the finance industry. In order to get actionable insights into the business, data has become most valuable asset of financial organisations, as there are no physical products in finance industry to manufacture. This is where data mining techniques come to their rescue by allowing access to the right information at the right time. These techniques are used by the finance industry in various areas such as fraud detection, intelligent forecasting, credit rating, loan management, customer profiling, money laundering, marketing and prediction of price movements to name a few. This work aims to survey the research on data mining techniques applied to the finance industry from 2010 to 2015.The review finds that Stock prediction and Credit rating have received most attention of researchers, compared to Loan prediction, Money Laundering and Time Series prediction. Due to the dynamics, uncertainty and variety of data, nonlinear mapping techniques have been deeply studied than linear techniques. Also it has been proved that hybrid methods are more accurate in prediction, closely followed by Neural Network technique. This survey could provide a clue of applications of data mining techniques for finance industry, and a summary of methodologies for researchers in this area. Especially, it could provide a good vision of Data Mining Techniques in computational finance for beginners who want to work in the field of computational finance

Gravitational Search For Designing A Fuzzy Rule-Based Classifiers For Handwritten Signature Verification

Handwritten signatures are used in authentication systems as a universal biometric identifier. Signature authenticity verification requires building and training a classifier. This paper describes a new approach to the verification of handwritten signatures by dynamic characteristics with a fuzzy rule-based classifier. It is suggested to use the metaheuristic Gravitational Search Algorithm for the selection of the relevant features and tuning fuzzy rule parameters. The efficiency of the approach was tested with an original dataset; the type II errors in finding the signature authenticity did not exceed 0.5% for the worst model and 0.08% for the best model

Intelligent network intrusion detection using an evolutionary computation approach

With the enormous growth of users\u27 reliance on the Internet, the need for secure and reliable computer networks also increases. Availability of effective automatic tools for carrying out different types of network attacks raises the need for effective intrusion detection systems. Generally, a comprehensive defence mechanism consists of three phases, namely, preparation, detection and reaction. In the preparation phase, network administrators aim to find and fix security vulnerabilities (e.g., insecure protocol and vulnerable computer systems or firewalls), that can be exploited to launch attacks. Although the preparation phase increases the level of security in a network, this will never completely remove the threat of network attacks. A good security mechanism requires an Intrusion Detection System (IDS) in order to monitor security breaches when the prevention schemes in the preparation phase are bypassed. To be able to react to network attacks as fast as possible, an automatic detection system is of paramount importance. The later an attack is detected, the less time network administrators have to update their signatures and reconfigure their detection and remediation systems. An IDS is a tool for monitoring the system with the aim of detecting and alerting intrusive activities in networks. These tools are classified into two major categories of signature-based and anomaly-based. A signature-based IDS stores the signature of known attacks in a database and discovers occurrences of attacks by monitoring and comparing each communication in the network against the database of signatures. On the other hand, mechanisms that deploy anomaly detection have a model of normal behaviour of system and any significant deviation from this model is reported as anomaly. This thesis aims at addressing the major issues in the process of developing signature based IDSs. These are: i) their dependency on experts to create signatures, ii) the complexity of their models, iii) the inflexibility of their models, and iv) their inability to adapt to the changes in the real environment and detect new attacks. To meet the requirements of a good IDS, computational intelligence methods have attracted considerable interest from the research community. This thesis explores a solution to automatically generate compact rulesets for network intrusion detection utilising evolutionary computation techniques. The proposed framework is called ESR-NID (Evolving Statistical Rulesets for Network Intrusion Detection). Using an interval-based structure, this method can be deployed for any continuous-valued input data. Therefore, by choosing appropriate statistical measures (i.e. continuous-valued features) of network trafc as the input to ESRNID, it can effectively detect varied types of attacks since it is not dependent on the signatures of network packets. In ESR-NID, several innovations in the genetic algorithm were developed to keep the ruleset small. A two-stage evaluation component in the evolutionary process takes the cooperation of rules into consideration and results into very compact, easily understood rulesets. The effectiveness of this approach is evaluated against several sources of data for both detection of normal and abnormal behaviour. The results are found to be comparable to those achieved using other machine learning methods from both categories of GA-based and non-GA-based methods. One of the significant advantages of ESR-NIS is that it can be tailored to specific problem domains and the characteristics of the dataset by the use of different fitness and performance functions. This makes the system a more flexible model compared to other learning techniques. Additionally, an IDS must adapt itself to the changing environment with the least amount of configurations. ESR-NID uses an incremental learning approach as new flow of traffic become available. The incremental learning approach benefits from less required storage because it only keeps the generated rules in its database. This is in contrast to the infinitely growing size of repository of raw training data required for traditional learning

A Survey on Particle Swarm Optimization for Association Rule Mining

Association rule mining (ARM) is one of the core techniques of data mining to discover potentially valuable association relationships from mixed datasets. In the current research, various heuristic algorithms have been introduced into ARM to address the high computation time of traditional ARM. Although a more detailed review of the heuristic algorithms based on ARM is available, this paper differs from the existing reviews in that we expected it to provide a more comprehensive and multi-faceted survey of emerging research, which could provide a reference for researchers in the field to help them understand the state-of-the-art PSO-based ARM algorithms. In this paper, we review the existing research results. Heuristic algorithms for ARM were divided into three main groups, including biologically inspired, physically inspired, and other algorithms. Additionally, different types of ARM and their evaluation metrics are described in this paper, and the current status of the improvement in PSO algorithms is discussed in stages, including swarm initialization, algorithm parameter optimization, optimal particle update, and velocity and position updates. Furthermore, we discuss the applications of PSO-based ARM algorithms and propose further research directions by exploring the existing problems.publishedVersio