Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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A Data Mining Procedure for Unbalanced Binary Classification

불균형 이분 데이터 분류분석을 위한 데이터마이닝 절차

  • Jung, Han-Na (Department of Industrial and Management Engineering, Pohang University of Science and Technology) ;
  • Lee, Jeong-Hwa (Department of Industrial and Management Engineering, Pohang University of Science and Technology) ;
  • Jun, Chi-Hyuck (Department of Industrial and Management Engineering, Pohang University of Science and Technology)
  • 정한나 (포항공과대학교 산업경영공학과) ;
  • 이정화 (포항공과대학교 산업경영공학과) ;
  • 전치혁 (포항공과대학교 산업경영공학과)
  • Received : 2009.08.05
  • Accepted : 2010.02.09
  • Published : 2010.03.01
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Abstract

The prediction of contract cancellation of customers is essential in insurance companies but it is a difficult problem because the customer database is large and the target or cancelled customers are a small proportion of the database. This paper proposes a new data mining approach to the binary classification by handling a large-scale unbalanced data. Over-sampling, clustering, regularized logistic regression and boosting are also incorporated in the proposed approach. The proposed approach was applied to a real data set in the area of insurance and the results were compared with some other classification techniques.

Keywords

References

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