• Journal of Intelligence and Information Systems
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• v.20 no.1
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• pp.35-48
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• 2014

According to the 2013 construction market outlook report, the liquidation of construction companies is expected to continue due to the ongoing residential construction recession. Bankruptcies of construction companies have a greater social impact compared to other industries. However, due to the different nature of the capital structure and debt-to-equity ratio, it is more difficult to forecast construction companies' bankruptcies than that of companies in other industries. The construction industry operates on greater leverage, with high debt-to-equity ratios, and project cash flow focused on the second half. The economic cycle greatly influences construction companies. Therefore, downturns tend to rapidly increase the bankruptcy rates of construction companies. High leverage, coupled with increased bankruptcy rates, could lead to greater burdens on banks providing loans to construction companies. Nevertheless, the bankruptcy prediction model concentrated mainly on financial institutions, with rare construction-specific studies. The bankruptcy prediction model based on corporate finance data has been studied for some time in various ways. However, the model is intended for all companies in general, and it may not be appropriate for forecasting bankruptcies of construction companies, who typically have high liquidity risks. The construction industry is capital-intensive, operates on long timelines with large-scale investment projects, and has comparatively longer payback periods than in other industries. With its unique capital structure, it can be difficult to apply a model used to judge the financial risk of companies in general to those in the construction industry. Diverse studies of bankruptcy forecasting models based on a company's financial statements have been conducted for many years. The subjects of the model, however, were general firms, and the models may not be proper for accurately forecasting companies with disproportionately large liquidity risks, such as construction companies. The construction industry is capital-intensive, requiring significant investments in long-term projects, therefore to realize returns from the investment. The unique capital structure means that the same criteria used for other industries cannot be applied to effectively evaluate financial risk for construction firms. Altman Z-score was first published in 1968, and is commonly used as a bankruptcy forecasting model. It forecasts the likelihood of a company going bankrupt by using a simple formula, classifying the results into three categories, and evaluating the corporate status as dangerous, moderate, or safe. When a company falls into the "dangerous" category, it has a high likelihood of bankruptcy within two years, while those in the "safe" category have a low likelihood of bankruptcy. For companies in the "moderate" category, it is difficult to forecast the risk. Many of the construction firm cases in this study fell in the "moderate" category, which made it difficult to forecast their risk. Along with the development of machine learning using computers, recent studies of corporate bankruptcy forecasting have used this technology. Pattern recognition, a representative application area in machine learning, is applied to forecasting corporate bankruptcy, with patterns analyzed based on a company's financial information, and then judged as to whether the pattern belongs to the bankruptcy risk group or the safe group. The representative machine learning models previously used in bankruptcy forecasting are Artificial Neural Networks, Adaptive Boosting (AdaBoost) and, the Support Vector Machine (SVM). There are also many hybrid studies combining these models. Existing studies using the traditional Z-Score technique or bankruptcy prediction using machine learning focus on companies in non-specific industries. Therefore, the industry-specific characteristics of companies are not considered. In this paper, we confirm that adaptive boosting (AdaBoost) is the most appropriate forecasting model for construction companies by based on company size. We classified construction companies into three groups - large, medium, and small based on the company's capital. We analyzed the predictive ability of AdaBoost for each group of companies. The experimental results showed that AdaBoost has more predictive ability than the other models, especially for the group of large companies with capital of more than 50 billion won.

• Journal of Intelligence and Information Systems
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• v.24 no.2
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• pp.111-124
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• 2018

This study aims to develop a classification model for predicting the occurrence of hyperlipidemia, one of the chronic diseases. Prior studies applying data mining techniques for predicting disease can be classified into a model design study for predicting cardiovascular disease and a study comparing disease prediction research results. In the case of foreign literatures, studies predicting cardiovascular disease were predominant in predicting disease using data mining techniques. Although domestic studies were not much different from those of foreign countries, studies focusing on hypertension and diabetes were mainly conducted. Since hypertension and diabetes as well as chronic diseases, hyperlipidemia, are also of high importance, this study selected hyperlipidemia as the disease to be analyzed. We also developed a model for predicting hyperlipidemia using SVM and meta learning algorithms, which are already known to have excellent predictive power. In order to achieve the purpose of this study, we used data set from Korea Health Panel 2012. The Korean Health Panel produces basic data on the level of health expenditure, health level and health behavior, and has conducted an annual survey since 2008. In this study, 1,088 patients with hyperlipidemia were randomly selected from the hospitalized, outpatient, emergency, and chronic disease data of the Korean Health Panel in 2012, and 1,088 nonpatients were also randomly extracted. A total of 2,176 people were selected for the study. Three methods were used to select input variables for predicting hyperlipidemia. First, stepwise method was performed using logistic regression. Among the 17 variables, the categorical variables(except for length of smoking) are expressed as dummy variables, which are assumed to be separate variables on the basis of the reference group, and these variables were analyzed. Six variables (age, BMI, education level, marital status, smoking status, gender) excluding income level and smoking period were selected based on significance level 0.1. Second, C4.5 as a decision tree algorithm is used. The significant input variables were age, smoking status, and education level. Finally, C4.5 as a decision tree algorithm is used. In SVM, the input variables selected by genetic algorithms consisted of 6 variables such as age, marital status, education level, economic activity, smoking period, and physical activity status, and the input variables selected by genetic algorithms in artificial neural network consist of 3 variables such as age, marital status, and education level. Based on the selected parameters, we compared SVM, meta learning algorithm and other prediction models for hyperlipidemia patients, and compared the classification performances using TP rate and precision. The main results of the analysis are as follows. First, the accuracy of the SVM was 88.4% and the accuracy of the artificial neural network was 86.7%. Second, the accuracy of classification models using the selected input variables through stepwise method was slightly higher than that of classification models using the whole variables. Third, the precision of artificial neural network was higher than that of SVM when only three variables as input variables were selected by decision trees. As a result of classification models based on the input variables selected through the genetic algorithm, classification accuracy of SVM was 88.5% and that of artificial neural network was 87.9%. Finally, this study indicated that stacking as the meta learning algorithm proposed in this study, has the best performance when it uses the predicted outputs of SVM and MLP as input variables of SVM, which is a meta classifier. The purpose of this study was to predict hyperlipidemia, one of the representative chronic diseases. To do this, we used SVM and meta-learning algorithms, which is known to have high accuracy. As a result, the accuracy of classification of hyperlipidemia in the stacking as a meta learner was higher than other meta-learning algorithms. However, the predictive performance of the meta-learning algorithm proposed in this study is the same as that of SVM with the best performance (88.6%) among the single models. The limitations of this study are as follows. First, various variable selection methods were tried, but most variables used in the study were categorical dummy variables. In the case with a large number of categorical variables, the results may be different if continuous variables are used because the model can be better suited to categorical variables such as decision trees than general models such as neural networks. Despite these limitations, this study has significance in predicting hyperlipidemia with hybrid models such as met learning algorithms which have not been studied previously. It can be said that the result of improving the model accuracy by applying various variable selection techniques is meaningful. In addition, it is expected that our proposed model will be effective for the prevention and management of hyperlipidemia.

• Journal of Intelligence and Information Systems
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• v.20 no.2
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• pp.73-92
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• 2014

An Adaptive Clustering-based Collaborative Filtering Technique was proposed to solve the fundamental problems of collaborative filtering, such as cold-start problems, scalability problems and data sparsity problems. Previous collaborative filtering techniques were carried out according to the recommendations based on the predicted preference of the user to a particular item using a similar item subset and a similar user subset composed based on the preference of users to items. For this reason, if the density of the user preference matrix is low, the reliability of the recommendation system will decrease rapidly. Therefore, the difficulty of creating a similar item subset and similar user subset will be increased. In addition, as the scale of service increases, the time needed to create a similar item subset and similar user subset increases geometrically, and the response time of the recommendation system is then increased. To solve these problems, this paper suggests a collaborative filtering technique that adapts a condition actively to the model and adopts the concepts of a context-based filtering technique. This technique consists of four major methodologies. First, items are made, the users are clustered according their feature vectors, and an inter-cluster preference between each item cluster and user cluster is then assumed. According to this method, the run-time for creating a similar item subset or user subset can be economized, the reliability of a recommendation system can be made higher than that using only the user preference information for creating a similar item subset or similar user subset, and the cold start problem can be partially solved. Second, recommendations are made using the prior composed item and user clusters and inter-cluster preference between each item cluster and user cluster. In this phase, a list of items is made for users by examining the item clusters in the order of the size of the inter-cluster preference of the user cluster, in which the user belongs, and selecting and ranking the items according to the predicted or recorded user preference information. Using this method, the creation of a recommendation model phase bears the highest load of the recommendation system, and it minimizes the load of the recommendation system in run-time. Therefore, the scalability problem and large scale recommendation system can be performed with collaborative filtering, which is highly reliable. Third, the missing user preference information is predicted using the item and user clusters. Using this method, the problem caused by the low density of the user preference matrix can be mitigated. Existing studies on this used an item-based prediction or user-based prediction. In this paper, Hao Ji's idea, which uses both an item-based prediction and user-based prediction, was improved. The reliability of the recommendation service can be improved by combining the predictive values of both techniques by applying the condition of the recommendation model. By predicting the user preference based on the item or user clusters, the time required to predict the user preference can be reduced, and missing user preference in run-time can be predicted. Fourth, the item and user feature vector can be made to learn the following input of the user feedback. This phase applied normalized user feedback to the item and user feature vector. This method can mitigate the problems caused by the use of the concepts of context-based filtering, such as the item and user feature vector based on the user profile and item properties. The problems with using the item and user feature vector are due to the limitation of quantifying the qualitative features of the items and users. Therefore, the elements of the user and item feature vectors are made to match one to one, and if user feedback to a particular item is obtained, it will be applied to the feature vector using the opposite one. Verification of this method was accomplished by comparing the performance with existing hybrid filtering techniques. Two methods were used for verification: MAE(Mean Absolute Error) and response time. Using MAE, this technique was confirmed to improve the reliability of the recommendation system. Using the response time, this technique was found to be suitable for a large scaled recommendation system. This paper suggested an Adaptive Clustering-based Collaborative Filtering Technique with high reliability and low time complexity, but it had some limitations. This technique focused on reducing the time complexity. Hence, an improvement in reliability was not expected. The next topic will be to improve this technique by rule-based filtering.