skip to main content
10.1145/3014812.3014817acmotherconferencesArticle/Chapter ViewAbstractPublication Pagesaus-cswConference Proceedingsconference-collections
research-article

A fuzzy decision tree approach based on data distribution construction

Published: 31 January 2017 Publication History

Abstract

In the credit risk evaluation process, credit classification is one of the most popular method to assess the according risk. In real world application, credit classification can distinguish the bad credit transactions from the good ones, which avoids potential risks. To identify the potential risks (bad credit), we employ a fuzzy decision tree method to accomplish the classification process for the credit risk evaluation, because it owns the advantages of ease of interpretation, reduction of information loss and competitive theoretical basis. To further extend these advantages, this paper proposes a novel data-distribution based fuzzy decision tree (DDBFDT) approach, which not only represents a new fuzzy partition points finding algorithm but also formulates the process of building membership function. The merits of our approach is fourfold: 1) a new error-related metric to select the best attribute for creating our fuzzy decision tree; 2) a data-distribution aware algorithm in the process of partition point searching 3) development of less computing complex non-linear membership function and more interpretable fuzzy sets building strategy with original data distribution involved; 4) better performance than similar models and high readability due to our fuzzy result of classification, as well as robustness and resisting disturbance. Our proposed DDBFDT approach is testified by both rigorous theoretics and a couple of experiments using public opened data-sets as well as synthesized data-sets.

References

[1]
F. Al-Obeidat, A. T. Al-Taani, N. Belacel, L. Feltrin, and N. Banerjee. A fuzzy decision tree for processing satellite images and landsat data. Procedia Computer Science, 52:1192--1197, 2015.
[2]
J. Baldwin, J. Lawry, and T. Martin. Mass assignment fuzzy id3 with applications. In Proceedings of the Unicom Workshop on Fuzzy Logic: Applications and Future Directions, pages 278--294. Citeseer, 1997.
[3]
B. A. Bliss, Y. Cheng, and D. J. Denis. Corporate payout, cash retention, and the supply of credit: Evidence from the 2008--2009 credit crisis. Journal of Financial Economics, 115(3):521--540, 2015.
[4]
P. Bujnowski, E. Szmidt, and J. Kacprzyk. Intuitionistic fuzzy decision tree: A new classifier. In Intelligent Systems' 2014, pages 779--790. Springer, 2015.
[5]
W. Buntine and T. Niblett. A further comparison of splitting rules for decision-tree induction. Machine Learning, 8(1):75--85, 1992.
[6]
R. L. Chang and T. Pavlidis. Fuzzy decision tree algorithms. IEEE Transactions on Systems, Man, and Cybernetics, 1(7):28--35, 1977.
[7]
A. De Luca and S. Termini. A definition of a nonprobabilistic entropy in the setting of fuzzy sets theory. Information and control, 20(4):301--312, 1972.
[8]
C.-Y. Fan, P.-C. Chang, J.-J. Lin, and J. Hsieh. A hybrid model combining case-based reasoning and fuzzy decision tree for medical data classification. Applied Soft Computing, 11(1):632--644, 2011.
[9]
J. Han and M. Kamber. Data Mining, Southeast Asia Edition: Concepts and Techniques. Morgan kaufmann, 2006.
[10]
S. Hashemi and Y. Yang. Flexible decision tree for data stream classification in the presence of concept change, noise and missing values. Data Mining and Knowledge Discovery, 19(1):95--131, 2009.
[11]
J. He, X. Liu, Y. Shi, W. Xu, and N. Yan. Classifications of credit cardholder behavior by using fuzzy linear programming. International Journal of Information Technology & Decision Making, 3(04):633--650, 2004.
[12]
M. Higashi and G. J. Klir. Measures of uncertainty and information based on possibility distributions. International Journal of General Systems, 9(1):43--58, 1982.
[13]
H. Ichihashi, T. Shirai, K. Nagasaka, and T. Miyoshi. Neuro-fuzzy id3: a method of inducing fuzzy decision trees with linear programming for maximizing entropy and an algebraic method for incremental learning. Fuzzy sets and systems, 81(1):157--167, 1996.
[14]
A. Isazadeh, F. Mahan, and W. Pedrycz. Mflexdt: multi flexible fuzzy decision tree for data stream classification. Soft Computing, pages 1--15, 2015.
[15]
T. Joachims. Svm-light: Support vector machine. http://svmlight.joachims.org/, 2004.
[16]
G. Klir and B. Yuan. Fuzzy sets and fuzzy logic, volume 4. Prentice Hall New Jersey, 1995.
[17]
G. J. Klir. Where do we stand on measures of uncertainty, ambiguity, fuzziness, and the like? Fuzzy sets and systems, 24(2):141--160, 1987.
[18]
G. J. Klir and T. A. Folger. Fuzzy sets, uncertainty, and information. Hall1988.
[19]
P. Majumder, U. Bera, and M. Maiti. An epq model of deteriorating items under partial trade credit financing and demand declining market in crisp and fuzzy environment. Procedia Computer Science, 45:780--789, 2015.
[20]
E. Mays. Handbook of credit scoring. Global Professional Publishi, 2001.
[21]
W. Meier, R. Weber, and H.-J. Zimmermann. Fuzzy data analysisâĂTKmethods and industrial applications. Fuzzy sets and systems, 61(1):19--28, 1994.
[22]
C. Negoita, L. Zadeh, and H. Zimmermann. Fuzzy sets as a basis for a theory of possibility. Fuzzy sets and systems, 1:3--28, 1978.
[23]
C. Olaru and L. Wehenkel. A complete fuzzy decision tree technique. Fuzzy sets and systems, 138(2):221--254, 2003.
[24]
B. Pradhan. A comparative study on the predictive ability of the decision tree, support vector machine and neuro-fuzzy models in landslide susceptibility mapping using gis. Computers & Geosciences, 51:350--365, 2013.
[25]
J. Quinlan. See5.0. http://www.rulequest.com/see5-info.html, 2004.
[26]
A. S. Rez and J. F. Lutsko. Globally optimal fuzzy decision trees for classification and regression. Pattern Analysis and Machine Intelligence, IEEE Transactions on, 21(12):1297--1311, 1999.
[27]
L. Rokach. Fuzzy decision trees. 2008.
[28]
J. A. Schumpeter. The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle, volume 55. Transaction publishers, 1934.
[29]
C. E. Shannon. A mathematical theory of communication. ACM SIGMOBILE Mobile Computing and Communications Review, 5(1):3--55, 2001.
[30]
L. C. Thomas, D. B. Edelman, and J. N. Crook. Credit scoring and its applications. Siam, 2002.
[31]
E. Turunen and E. Turunen. Mathematics behind fuzzy logic. Physica-Verlag Heidelberg, 1999.
[32]
X. Wang, B. Chen, G. Qian, and F. Ye. On the optimization of fuzzy decision trees. Fuzzy Sets and Systems, 112(1):117--125, 2000.
[33]
X.-Z. Wang, L.-C. Dong, and J.-H. Yan. Maximum ambiguity-based sample selection in fuzzy decision tree induction. Knowledge and Data Engineering, IEEE Transactions on, 24(8):1491--1505, 2012.
[34]
D. Yadav, S. Singh, and R. Kumari. Retailer's optimal policy under inflation in fuzzy environment with trade credit. International Journal of Systems Science, 46(4):754--762, 2015.
[35]
Y. Yuan and M. J. Shaw. Induction of fuzzy decision trees. Fuzzy Sets and systems, 69(2):125--139, 1995.

Cited By

View all
  • (2021)Fuzzy Frequent Pattern Mining Algorithm Based on Weighted Sliding Window and Type-2 Fuzzy Sets over Medical Data StreamWireless Communications & Mobile Computing10.1155/2021/66622542021Online publication date: 1-Jan-2021
  • (2020)Fuzzy Association Rule Mining Algorithm Based on Load ClassifierData Science10.1007/978-981-15-2810-1_18(178-191)Online publication date: 2-Feb-2020
  • (2018)A general model for fuzzy decision tree and fuzzy random forestComputational Intelligence10.1111/coin.1219535:2(310-335)Online publication date: 23-Nov-2018
  • Show More Cited By

Recommendations

Comments

Information & Contributors

Information

Published In

cover image ACM Other conferences
ACSW '17: Proceedings of the Australasian Computer Science Week Multiconference
January 2017
615 pages
ISBN:9781450347686
DOI:10.1145/3014812
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 31 January 2017

Permissions

Request permissions for this article.

Check for updates

Author Tags

  1. fuzzy decision tree
  2. fuzzy logic
  3. non-linear membership function
  4. partition point

Qualifiers

  • Research-article

Funding Sources

Conference

ACSW 2017
ACSW 2017: Australasian Computer Science Week 2017
January 30 - February 3, 2017
Geelong, Australia

Acceptance Rates

ACSW '17 Paper Acceptance Rate 78 of 156 submissions, 50%;
Overall Acceptance Rate 204 of 424 submissions, 48%

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • Downloads (Last 12 months)6
  • Downloads (Last 6 weeks)2
Reflects downloads up to 05 Mar 2025

Other Metrics

Citations

Cited By

View all
  • (2021)Fuzzy Frequent Pattern Mining Algorithm Based on Weighted Sliding Window and Type-2 Fuzzy Sets over Medical Data StreamWireless Communications & Mobile Computing10.1155/2021/66622542021Online publication date: 1-Jan-2021
  • (2020)Fuzzy Association Rule Mining Algorithm Based on Load ClassifierData Science10.1007/978-981-15-2810-1_18(178-191)Online publication date: 2-Feb-2020
  • (2018)A general model for fuzzy decision tree and fuzzy random forestComputational Intelligence10.1111/coin.1219535:2(310-335)Online publication date: 23-Nov-2018
  • (2017)Learning a fuzzy decision tree from uncertain data2017 12th International Conference on Intelligent Systems and Knowledge Engineering (ISKE)10.1109/ISKE.2017.8258728(1-7)Online publication date: Nov-2017

View Options

Login options

View options

PDF

View or Download as a PDF file.

PDF

eReader

View online with eReader.

eReader

Figures

Tables

Media

Share

Share

Share this Publication link

Share on social media