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Operations Research, Systems Engineering and Industrial Engineering Commons

Open Access. Powered by Scholars. Published by Universities.®

2007

Business

Portland State University

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Full-Text Articles in Operations Research, Systems Engineering and Industrial Engineering

Using Reconstructability Analysis For Input Variable Reduction: A Business Example, Stephen Shervais, Martin Zwick Aug 2007

Using Reconstructability Analysis For Input Variable Reduction: A Business Example, Stephen Shervais, Martin Zwick

Systems Science Faculty Publications and Presentations

We demonstrate the use of reconstructability analysis (RA) on the UCI Australian Credit dataset to reduce the number of input variables for two different analysis tools. Using 14 variables, an artificial neural net (NN) is able to predict whether or not credit was granted, with a 79.1% success rate. RA preprocessing allows us to reduce the number of independent variables from 14 to two different sets of three, which have success rates of 77.2% and 76.9% respectively. The difference between these rates and that of the 14-variable NN is not statistically significant. The three-variable rulesets given by RA achieve success …