MULTIVALUED SUBSETS UNDER INFORMATION THEORY

In the fields of finance, engineering and varied sciences, Data Mining/ Machine Learning has held an eminent position in predictive analysis. Complex algorithms and adaptive decision models have contributed towards streamlining directed research as well as improve on the accuracies in forecasting. Researchers in the fields of mathematics and computer science have made significant contributions towards the development of this field. Classification based modeling, which holds a significant position amongst the different rule-based algorithms, is one of the most widely used decision making tools. The decision tree has a place of profound significance in classification-based modeling. A number of heuristics have been developed over the years to prune the decision making process. Some key benchmarks in the evolution of the decision tree could to attributed to the researchers like Quinlan (ID3 and C4.5), Fayyad (GID3/3*, continuous value discretization), etc. The most common heuristic applied for these trees is the entropy discussed under information theory by Shannon. The current application with entropy covered under the term `Information Gain\u27 is directed towards individual assessment of the attribute-value sets. The proposed study takes a look at the effects of combining the attribute-value sets, aimed at improving the information gain. Couple of key applications have been tested and presented with statistical conclusions. The first being the application towards the feature selection process, a key step in the data mining process, while the second application is targeted towards the discretization of data. A search-based heuristic tool is applied towards identifying the subsets sharing a better gain value than the ones presented in the GID approach

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

Generalized FLIC: Learning with Misclassification for Binary Classifiers

This work formally introduces a generalized fuzzy logic and interval clustering (FLIC) technique which, when integrated with existing supervised learning algorithms, improves their performance. FLIC is a method that was first integrated with neural network in order to improve neural network's performance in drug discovery using high throughput screening (HTS). This research strictly focuses on binary classification problems and generalizes the FLIC in order to incorporate it with other machine learning algorithms. In most binary classification problems, the class boundary is not linear. This pose a major problem when the number of outliers are significantly high, degrading the performance of the supervised learning function. FLIC identifies these misclassifications before the training set is introduced to the learning algorithm. This allows the supervised learning algorithm to learn more efficiently since it is now aware of those misclassifications. Although the proposed method performs well with most binary classification problems, it does significantly well for data set with high class asymmetry. The proposed method has been tested on four well known data sets of which three are from UCI Machine Learning repository and one from BigML. Tests have been conducted with three well known supervised learning techniques: Decision Tree, Logistic Regression and Naive Bayes. The results from the experiments show significant improvement in performance. The paper begins with a formal introduction to the core idea this research is based upon. It then discusses a list of other methods that have either inspired this research or have been referred to, in order to formalize the techniques. Subsequent sections discuss the methodology and the algorithm which is followed by results and conclusion

Signature Verification Approach using Fusion of Hybrid Texture Features

In this paper, a writer-dependent signature verification method is proposed. Two different types of texture features, namely Wavelet and Local Quantized Patterns (LQP) features, are employed to extract two kinds of transform and statistical based information from signature images. For each writer two separate one-class support vector machines (SVMs) corresponding to each set of LQP and Wavelet features are trained to obtain two different authenticity scores for a given signature. Finally, a score level classifier fusion method is used to integrate the scores obtained from the two one-class SVMs to achieve the verification score. In the proposed method only genuine signatures are used to train the one-class SVMs. The proposed signature verification method has been tested using four different publicly available datasets and the results demonstrate the generality of the proposed method. The proposed system outperforms other existing systems in the literature.Comment: Neural Computing and Applicatio

Ada-WHIPS: explaining AdaBoost classification with applications in the health sciences

Background Computer Aided Diagnostics (CAD) can support medical practitioners to make critical decisions about their patients’ disease conditions. Practitioners require access to the chain of reasoning behind CAD to build trust in the CAD advice and to supplement their own expertise. Yet, CAD systems might be based on black box machine learning models and high dimensional data sources such as electronic health records, magnetic resonance imaging scans, cardiotocograms, etc. These foundations make interpretation and explanation of the CAD advice very challenging. This challenge is recognised throughout the machine learning research community. eXplainable Artificial Intelligence (XAI) is emerging as one of the most important research areas of recent years because it addresses the interpretability and trust concerns of critical decision makers, including those in clinical and medical practice. Methods In this work, we focus on AdaBoost, a black box model that has been widely adopted in the CAD literature. We address the challenge – to explain AdaBoost classification – with a novel algorithm that extracts simple, logical rules from AdaBoost models. Our algorithm, Adaptive-Weighted High Importance Path Snippets (Ada-WHIPS), makes use of AdaBoost’s adaptive classifier weights. Using a novel formulation, Ada-WHIPS uniquely redistributes the weights among individual decision nodes of the internal decision trees of the AdaBoost model. Then, a simple heuristic search of the weighted nodes finds a single rule that dominated the model’s decision. We compare the explanations generated by our novel approach with the state of the art in an experimental study. We evaluate the derived explanations with simple statistical tests of well-known quality measures, precision and coverage, and a novel measure stability that is better suited to the XAI setting. Results Experiments on 9 CAD-related data sets showed that Ada-WHIPS explanations consistently generalise better (mean coverage 15%-68%) than the state of the art while remaining competitive for specificity (mean precision 80%-99%). A very small trade-off in specificity is shown to guard against over-fitting which is a known problem in the state of the art methods. Conclusions The experimental results demonstrate the benefits of using our novel algorithm for explaining CAD AdaBoost classifiers widely found in the literature. Our tightly coupled, AdaBoost-specific approach outperforms model-agnostic explanation methods and should be considered by practitioners looking for an XAI solution for this class of models