Abstract

Abstract
This chapter introduces the volume on Applications of Data Mining in E-Business and Finance. It discusses how application-specific issues can affect the development of a data mining project. An overview of the chapters in the book is then given to guide the reader.

Abstract

Abstract
We investigate the problem of using past performance information to select an algorithm for a given classification problem. We present three ranking methods for that purpose: average ranks, success rate ratios and significant wins. We also analyze the problem of evaluating and comparing these methods. The evaluation technique used is based on a leave-one-out procedure. On each iteration, the method generates a ranking using the results obtained by the algorithms on the training datasets. This ranking is then evaluated by calculating its distance from the ideal ranking built using the performance information on the test dataset. The distance measure adopted here, average correlation, is based on Spearman's rank correlation coefficient. To compare ranking methods, a combination of Friedman's test and Dunn's multiple comparison procedure is adopted. When applied to the methods presented here, these tests indicate that the success rate ratios and average ranks methods perform better than significant wins.

Abstract
Discretization of continuous attributes is an important task for certain types of machine learning algorithms. Bayesian approaches, for instance, require assumptions about data distributions. Decision Trees on the other hand, require sorting operations to deal with continuous attributes, which largely increase learning times. This paper presents a new method of discretization, whose main characteristic is that it takes into account interdependencies between attributes. Detecting interdependencies can be seen as discovering redundant attributes. This means that our method performs attribute selection as a side effect of the discretization. Empirical evaluation on five benchmark datasets from UCI repository, using C4.5 and a naive Bayes, shows a consistent reduction of the features without loss of generalization accuracy.

Abstract