• Journal of Korean Institute of Industrial Engineers
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• v.36 no.1
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• pp.13-21
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• 2010

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.

• Journal of KIISE
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• v.43 no.11
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• pp.1270-1274
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• 2016

Logistic regression is widely used for predicting and estimating the relationship among variables. We propose a new logistic regression model, the value weighted logistic regression, which comprises of a fine-grained weighting method, and assigns adapted weights to each feature value. This gradient approach obtains the optimal weights of feature values. Experiments were conducted on several data sets from the UCI machine learning repository, and the results revealed that the proposed method achieves meaningful improvement in the prediction accuracy.