• Title/Summary/Keyword: synthetic minority oversampling technique (SMOTE)

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Experimental Analysis of Bankruptcy Prediction with SHAP framework on Polish Companies

  • Tuguldur Enkhtuya;Dae-Ki Kang
    • International journal of advanced smart convergence
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    • v.12 no.1
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    • pp.53-58
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    • 2023
  • With the fast development of artificial intelligence day by day, users are demanding explanations about the results of algorithms and want to know what parameters influence the results. In this paper, we propose a model for bankruptcy prediction with interpretability using the SHAP framework. SHAP (SHAPley Additive exPlanations) is framework that gives a visualized result that can be used for explanation and interpretation of machine learning models. As a result, we can describe which features are important for the result of our deep learning model. SHAP framework Force plot result gives us top features which are mainly reflecting overall model score. Even though Fully Connected Neural Networks are a "black box" model, Shapley values help us to alleviate the "black box" problem. FCNNs perform well with complex dataset with more than 60 financial ratios. Combined with SHAP framework, we create an effective model with understandable interpretation. Bankruptcy is a rare event, then we avoid imbalanced dataset problem with the help of SMOTE. SMOTE is one of the oversampling technique that resulting synthetic samples are generated for the minority class. It uses K-nearest neighbors algorithm for line connecting method in order to producing examples. We expect our model results assist financial analysts who are interested in forecasting bankruptcy prediction of companies in detail.

Failure Prognostics of Start Motor Based on Machine Learning (머신러닝을 이용한 스타트 모터의 고장예지)

  • Ko, Do-Hyun;Choi, Wook-Hyun;Choi, Seong-Dae;Hur, Jang-Wook
    • Journal of the Korean Society of Manufacturing Process Engineers
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    • v.20 no.12
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    • pp.85-91
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    • 2021
  • In our daily life, artificial intelligence performs simple and complicated tasks like us, including operating mobile phones and working at homes and workplaces. Artificial intelligence is used in industrial technology for diagnosing various types of equipment using the machine learning technology. This study presents a fault mode effect analysis (FMEA) of start motors using machine learning and big data. Through multiple data collection, we observed that the primary failure of the start motor was caused by the melting of the magnetic switch inside the start motor causing it to fail. Long-short-term memory (LSTM) was used to diagnose the condition of the magnetic locations, and synthetic data were generated using the synthetic minority oversampling technique (SMOTE). This technique has the advantage of increasing the data accuracy. LSTM can also predict a start motor failure.

Influence of Social Capital on Depression of Older Adults Living in Rural Area: A Cross-Sectional Study Using the 2019 Korea Community Health Survey (사회자본이 농촌 거주 노인의 우울 상태에 미치는 영향: 2019년도 지역사회건강조사를 이용한 단면연구)

  • Jung, Minho;Kim, Jinhyun
    • Journal of Korean Academy of Nursing
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    • v.52 no.2
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    • pp.144-156
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    • 2022
  • Purpose: This study aimed to investigate the influence of social capital on the depression of older adults living in rural areas. Methods: Data sets were obtained from the 2019 Korea Community Health Survey. The participants were 39,390 older adults over 65 years old living in rural areas. Indicators of social capital included trust, reciprocity, network, and social participation. Depression-the dependent variable-was measured using the Patient Health Questionnaire-9 (PHQ-9). Hierarchical ordinal logistic regression was conducted to identify factors associated with depression after adjusting the data numbers to 102,601 by applying the Synthetic Minority Oversampling Technique (SMOTE). Results: The independent variables-indicators of social capital-exhibited significant association with the depression of older adults. The odds ratios of depression were higher in groups without social capital variables. Conclusion: To reduce depression, we recommend increasing social capital. Factors identified in this study need to be considered in older adult depression intervention programs and policies.