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

Enhancing Fuzzy Associative Rule Mining Approaches for Improving Prediction Accuracy. Integration of Fuzzy Clustering, Apriori and Multiple Support Approaches to Develop an Associative Classification Rule Base

Building an accurate and reliable model for prediction for different application domains, is one of the most significant challenges in knowledge discovery and data mining. This thesis focuses on building and enhancing a generic predictive model for estimating a future value by extracting association rules (knowledge) from a quantitative database. This model is applied to several data sets obtained from different benchmark problems, and the results are evaluated through extensive experimental tests. The thesis presents an incremental development process for the prediction model with three stages. Firstly, a Knowledge Discovery (KD) model is proposed by integrating Fuzzy C-Means (FCM) with Apriori approach to extract Fuzzy Association Rules (FARs) from a database for building a Knowledge Base (KB) to predict a future value. The KD model has been tested with two road-traffic data sets. Secondly, the initial model has been further developed by including a diversification method in order to improve a reliable FARs to find out the best and representative rules. The resulting Diverse Fuzzy Rule Base (DFRB) maintains high quality and diverse FARs offering a more reliable and generic model. The model uses FCM to transform quantitative data into fuzzy ones, while a Multiple Support Apriori (MSapriori) algorithm is adapted to extract the FARs from fuzzy data. The correlation values for these FARs are calculated, and an efficient orientation for filtering FARs is performed as a post-processing method. The FARs diversity is maintained through the clustering of FARs, based on the concept of the sharing function technique used in multi-objectives optimization. The best and the most diverse FARs are obtained as the DFRB to utilise within the Fuzzy Inference System (FIS) for prediction. The third stage of development proposes a hybrid prediction model called Fuzzy Associative Classification Rule Mining (FACRM) model. This model integrates the ii improved Gustafson-Kessel (G-K) algorithm, the proposed Fuzzy Associative Classification Rules (FACR) algorithm and the proposed diversification method. The improved G-K algorithm transforms quantitative data into fuzzy data, while the FACR generate significant rules (Fuzzy Classification Association Rules (FCARs)) by employing the improved multiple support threshold, associative classification and vertical scanning format approaches. These FCARs are then filtered by calculating the correlation value and the distance between them. The advantage of the proposed FACRM model is to build a generalized prediction model, able to deal with different application domains. The validation of the FACRM model is conducted using different benchmark data sets from the University of California, Irvine (UCI) of machine learning and KEEL (Knowledge Extraction based on Evolutionary Learning) repositories, and the results of the proposed FACRM are also compared with other existing prediction models. The experimental results show that the error rate and generalization performance of the proposed model is better in the majority of data sets with respect to the commonly used models. A new method for feature selection entitled Weighting Feature Selection (WFS) is also proposed. The WFS method aims to improve the performance of FACRM model. The prediction performance is improved by minimizing the prediction error and reducing the number of generated rules. The prediction results of FACRM by employing WFS have been compared with that of FACRM and Stepwise Regression (SR) models for different data sets. The performance analysis and comparative study show that the proposed prediction model provides an effective approach that can be used within a decision support system.Applied Science University (ASU) of Jorda

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