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Physical Sciences and Mathematics Commons™
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Full-Text Articles in Physical Sciences and Mathematics
Using Machine Learning Techniques To Predict A Risk Score For New Members Of A Chit Fund Group, Sinead Aherne
Using Machine Learning Techniques To Predict A Risk Score For New Members Of A Chit Fund Group, Sinead Aherne
Dissertations
Predicting the risk score of new and potential customers is used across the financial industry. By implementing the prediction of risk scores for their customers a chit fund company can improve the knowledge and customer understanding without relying on human knowledge. Data is collected on each customer before they have taken out credit and during the time they contribute to a chit fund. Having collected the necessary data, the company can then decide whether modelling customer risk would benefit them. As the data is available historically, one aspect of risk score prediction will be the focus of this thesis, supervised …
Investigation Into The Predictive Power Of Artificial Neural Networks And Logistic Regression For Predicting Default In Chit Funds, Ciara Kerrigan
Investigation Into The Predictive Power Of Artificial Neural Networks And Logistic Regression For Predicting Default In Chit Funds, Ciara Kerrigan
Dissertations
This study evaluated the performance of an artificial neural network (ANN) multi-layer perceptron model and a logistic regression logitboost (LR) model to predict default in chit funds. The two types of default investigated were late payment of 30 days and late payment of 90 days. The dataset was broken up into training and validation datasets using random sampling and K folds cross validation was used on the training dataset to assess performance of the tuning parameters. The validation dataset was used to compare performance of both algorithms. Principle component analysis (PCA) was used to reduce the feature set while still …