• The Korean Journal of Applied Statistics
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• v.30 no.5
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• pp.681-690
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• 2017

Various imbalanced binary classification problems exist such as fraud detection in banking operations, detecting spam mail and predicting defective products. Several sampling methods such as over sampling, under sampling, SMOTE have been developed to overcome the poor prediction performance of binary classifiers when the proportion of one group is dominant. In order to overcome this problem, several sampling methods such as over-sampling, under-sampling, SMOTE have been developed. In this study, we investigate prediction performance of logistic regression, Lasso, random forest, boosting and support vector machine in combination with the sampling methods for binary imbalanced data. Four real data sets are analyzed to see if there is a substantial improvement in prediction performance. We also emphasize some precautions when the sampling methods are implemented.

• Journal of Digital Convergence
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• v.17 no.9
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• pp.71-78
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• 2019

This study aims to identify good borrowers within the context of P2P lending. P2P lending is a growing platform that allows individuals to lend and borrow money from each other. Inherent in any loans is credit risk of borrowers and needs to be considered before any lending. Specifically in the context of P2P lending, traditional models fall short and thus this study aimed to rectify this as well as explore the problem of class imbalances seen within credit risk data sets. This study implemented an over-sampling technique known as Synthetic Minority Over-sampling Technique (SMOTE). To test our approach, we implemented five benchmarking classifiers such as support vector machines, logistic regression, k-nearest neighbor, random forest, and deep neural network. The data sample used was retrieved from the publicly available LendingClub dataset. The proposed SMOTE revealed significantly improved results in comparison with the benchmarking classifiers. These results should help actors engaged within P2P lending to make better informed decisions when selecting potential borrowers eliminating the higher risks present in P2P lending.

• KIPS Transactions on Software and Data Engineering
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• v.7 no.4
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• pp.129-134
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• 2018

Recently, the artificial neural network (ANN) model is a promising technique in the prediction, numerical control, robot control and pattern recognition. We predicted the outside temperature of greenhouse using ANN and utilized the model in greenhouse control. The performance of ANN model was evaluated and compared with multiple regression model(MRM) and support vector machine (SVM) model. The 10-fold cross validation was used as the evaluation method. In order to improve the prediction performance, the data reduction was performed by correlation analysis and new factor were extracted from measured data to improve the reliability of training data. The backpropagation algorithm was used for constructing ANN, multiple regression model was constructed by M5 method. And SVM model was constructed by epsilon-SVM method. As the result showed that the RMSE (Root Mean Squared Error) value of ANN, MRM and SVM were 0.9256, 1.8503 and 7.5521 respectively. In addition, by applying the prediction model to greenhouse heating load calculation, it can increase the income by reducing the energy cost in the greenhouse. The heating load of the experimented greenhouse was 3326.4kcal/h and the fuel consumption was estimated to be 453.8L as the total heating time is $10000^{\circ}C/h$. Therefore, data mining technology of ANN can be applied to various agricultural fields such as precise greenhouse control, cultivation techniques, and harvest prediction, thereby contributing to the development of smart agriculture.

• Journal of Intelligence and Information Systems
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• v.28 no.2
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• pp.237-262
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• 2022

There has been a growing interest in IPOs (Initial Public Offerings) due to the profitable returns that IPO stocks can offer to investors. However, IPOs can be speculative investments that may involve substantial risk as well because shares tend to be volatile, and the supply of IPO shares is often highly limited. Therefore, it is crucially important that IPO investors are well informed of the issuing firms and the market before deciding whether to invest or not. Unlike institutional investors, individual investors are at a disadvantage since there are few opportunities for individuals to obtain information on the IPOs. In this regard, the purpose of this study is to provide individual investors with the information they may consider when making an IPO investment decision. This study presents a model that uses machine learning and text analysis to predict whether an IPO stock price would move up or down after the first 5 trading days. Our sample includes 691 Korean IPOs from June 2009 to December 2020. The input variables for the prediction are three tone variables created from IPO prospectuses and quantitative variables that are either firm-specific, issue-specific, or market-specific. The three prospectus tone variables indicate the percentage of positive, neutral, and negative sentences in a prospectus, respectively. We considered only the sentences in the Risk Factors section of a prospectus for the tone analysis in this study. All sentences were classified into 'positive', 'neutral', and 'negative' via text analysis using TF-IDF (Term Frequency - Inverse Document Frequency). Measuring the tone of each sentence was conducted by machine learning instead of a lexicon-based approach due to the lack of sentiment dictionaries suitable for Korean text analysis in the context of finance. For this reason, the training set was created by randomly selecting 10% of the sentences from each prospectus, and the sentence classification task on the training set was performed after reading each sentence in person. Then, based on the training set, a Support Vector Machine model was utilized to predict the tone of sentences in the test set. Finally, the machine learning model calculated the percentages of positive, neutral, and negative sentences in each prospectus. To predict the price movement of an IPO stock, four different machine learning techniques were applied: Logistic Regression, Random Forest, Support Vector Machine, and Artificial Neural Network. According to the results, models that use quantitative variables using technical analysis and prospectus tone variables together show higher accuracy than models that use only quantitative variables. More specifically, the prediction accuracy was improved by 1.45% points in the Random Forest model, 4.34% points in the Artificial Neural Network model, and 5.07% points in the Support Vector Machine model. After testing the performance of these machine learning techniques, the Artificial Neural Network model using both quantitative variables and prospectus tone variables was the model with the highest prediction accuracy rate, which was 61.59%. The results indicate that the tone of a prospectus is a significant factor in predicting the price movement of an IPO stock. In addition, the McNemar test was used to verify the statistically significant difference between the models. The model using only quantitative variables and the model using both the quantitative variables and the prospectus tone variables were compared, and it was confirmed that the predictive performance improved significantly at a 1% significance level.

• Analytical Science and Technology
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• v.24 no.6
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• pp.533-543
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• 2011

The hERG (human ether-a-go-go related gene) ion channel is a main factor for cardiac repolarization, and the blockade of this channel could induce arrhythmia and sudden death. Therefore, potential hERG ion channel inhibitors are now a primary concern in the drug discovery process, and lots of efforts are focused on the minimizing the cardiotoxic side effect. In this study, $IC_{50}$ data of 202 organic compounds in HEK (human embryonic kidney) cell from literatures were used to develop predictive 2D-QSAR model. Multiple linear regression (MLR), Support Vector Machine (SVM), and artificial neural network (ANN) were utilized to predict inhibition concentration of hERG ion channel as machine learning methods. Population based-forward selection method with cross-validation procedure was combined with each learning method and used to select best subset descriptors for each learning algorithm. The best model was ANN model based on 14 descriptors ($R^2_{CV}$=0.617, RMSECV=0.762, MAECV=0.583) and the MLR model could describe the structural characteristics of inhibitors and interaction with hERG receptors. The validation of QSAR models was evaluated through the 5-fold cross-validation and Y-scrambling test.

• Journal of the Computational Structural Engineering Institute of Korea
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• v.36 no.1
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• pp.9-18
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• 2023

Predicting the compressive strength of high-performance concrete (HPC) is challenging because of the use of additional cementitious materials; thus, the development of improved predictive models is essential. The purpose of this study was to develop an HPC compressive-strength prediction model using an ensemble machine-learning method of combined bagging and stacking techniques. The result is a new ensemble technique that integrates the existing ensemble methods of bagging and stacking to solve the problems of a single machine-learning model and improve the prediction performance of the model. The nonlinear regression, support vector machine, artificial neural network, and Gaussian process regression approaches were used as single machine-learning methods and bagging and stacking techniques as ensemble machine-learning methods. As a result, the model of the proposed method showed improved accuracy results compared with single machine-learning models, an individual bagging technique model, and a stacking technique model. This was confirmed through a comparison of four representative performance indicators, verifying the effectiveness of the method.

• Analytical Science and Technology
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• v.24 no.6
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• pp.544-555
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• 2011

The acute toxicity in the rainbow trout (Oncorhynchus mykiss) was analyzed and predicted using quantitative structure-activity relationships (QSAR). The aquatic toxicity, 96h $LC_{50}$ (median lethal concentration) of 275 organic pesticides, was obtained from EU-funded project DEMETRA. Prediction models were derived from 558 2D molecular descriptors, calculated in PreADMET. The linear (multiple linear regression) and nonlinear (support vector machine and artificial neural network) learning methods were optimized by taking into account the statistical parameters between the experimental and predicted p$LC_{50}$. After preprocessing, population based forward selection were used to select the best subsets of descriptors in the learning methods including 5-fold cross-validation procedure. The support vector machine model was used as the best model ($R^2_{CV}$=0.677, RMSECV=0.887, MSECV=0.674) and also correctly classified 87% for the training set according to EU regulation criteria. The MLR model could describe the structural characteristics of toxic chemicals and interaction with lipid membrane of fish. All the developed models were validated by 5 fold cross-validation and Y-scrambling test.

• Journal of the Korea Convergence Society
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• v.9 no.5
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• pp.33-41
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• 2018

The purpose of this study is to develop more accurate and robust emotion prediction neural network (EPNN) model by combining heart rate variability (HRV) and neural network. For the sake of improving the prediction performance more reliably, the proposed EPNN model is based on various types of activation functions like hyperbolic tangent, linear, and Gaussian functions, all of which are embedded in hidden nodes to improve its performance. In order to verify the validity of the proposed EPNN model, a number of HRV metrics were calculated from 20 valid and qualified participants whose emotions were induced by using money game. To add more rigor to the experiment, the participants' valence and arousal were checked and used as output node of the EPNN. The experiment results reveal that the F-Measure for Valence and Arousal is 80% and 95%, respectively, proving that the EPNN yields very robust and well-balanced performance. The EPNN performance was compared with competing models like neural network, logistic regression, support vector machine, and random forest. The EPNN was more accurate and reliable than those of the competing models. The results of this study can be effectively applied to many types of wearable computing devices when ubiquitous digital health environment becomes feasible and permeating into our everyday lives.

• Korean Journal of Remote Sensing
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• v.36 no.6_1
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• pp.1277-1290
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• 2020

Water resources which is formed of surface and groundwater, are considered as one of the pivotal natural resources worldwide. Since last century, the rapid population growth as well as accelerated industrialization and explosive urbanization lead to boost demand for groundwater for domestic, industrial and agricultural use. In fact, better management of groundwater can play crucial role in sustainable development; therefore, determining accurate location of groundwater based groundwater potential mapping is indispensable. In recent years, integration of machine learning techniques, Geographical Information System (GIS) and Remote Sensing (RS) are popular and effective methods employed for groundwater potential mapping. For determining the status of the integrated approach, a systematic review of 94 directly relevant papers were carried out over the six previous years (2015-2020). According to the literature review, the number of studies published annually increased rapidly over time. The total study area spanned 15 countries, and 85.1% of studies focused on Iran, India, China, South Korea, and Iraq. 20 variables were found to be frequently involved in groundwater potential investigations, of which 9 factors are almost always present namely slope, lithology (geology), land use/land cover (LU/LC), drainage/river density, altitude (elevation), topographic wetness index (TWI), distance from river, rainfall, and aspect. The data integration was carried random forest, support vector machine and boost regression tree among the machine learning techniques. Our study shows that for optimal results, groundwater mapping must be used as a tool to complement field work, rather than a low-cost substitute. Consequently, more study should be conducted to enhance the generalization and precision of groundwater potential map.

• Journal of Intelligence and Information Systems
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• v.23 no.1
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• pp.143-159
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• 2017

Due to the rapid development of IT in recent years, not only personal information but also the key technologies and information leakage that companies have are becoming important issues. For the enterprise, the core technology that the company possesses is a very important part for the survival of the enterprise and for the continuous competitive advantage. Recently, there have been many cases of technical infringement. Technology leaks not only cause tremendous financial losses such as falling stock prices for companies, but they also have a negative impact on corporate reputation and delays in corporate development. In the case of SMEs, where core technology is an important part of the enterprise, compared to large corporations, the preparation for technological leakage can be seen as an indispensable factor in the existence of the enterprise. As the necessity and importance of Information Security Management (ISM) is emerging, it is necessary to check and prepare for the threat of technology infringement early in the enterprise. Nevertheless, previous studies have shown that the majority of policy alternatives are represented by about 90%. As a research method, literature analysis accounted for 76% and empirical and statistical analysis accounted for a relatively low rate of 16%. For this reason, it is necessary to study the management model and prediction model to prevent leakage of technology to meet the characteristics of SMEs. In this study, before analyzing the empirical analysis, we divided the technical characteristics from the technology value perspective and the organizational factor from the technology control point based on many previous researches related to the factors affecting the technology leakage. A total of 12 related variables were selected for the two factors, and the analysis was performed with these variables. In this study, we use three - year data of "Small and Medium Enterprise Technical Statistics Survey" conducted by the Small and Medium Business Administration. Analysis data includes 30 industries based on KSIC-based 2-digit classification, and the number of companies affected by technology leakage is 415 over 3 years. Through this data, we conducted a randomized sampling in the same industry based on the KSIC in the same year, and compared with the companies (n = 415) and the unaffected firms (n = 415) 1:1 Corresponding samples were prepared and analyzed. In this research, we will conduct an empirical analysis to search for factors influencing technology leakage, and propose an early warning system through data mining. Specifically, in this study, based on the questionnaire survey of SMEs conducted by the Small and Medium Business Administration (SME), we classified the factors that affect the technology leakage of SMEs into two factors(Technology Characteristics, Organization Characteristics). And we propose a model that informs the possibility of technical infringement by using Support Vector Machine(SVM) which is one of the various techniques of data mining based on the proven factors through statistical analysis. Unlike previous studies, this study focused on the cases of various industries in many years, and it can be pointed out that the artificial intelligence model was developed through this study. In addition, since the factors are derived empirically according to the actual leakage of SME technology leakage, it will be possible to suggest to policy makers which companies should be managed from the viewpoint of technology protection. Finally, it is expected that the early warning model on the possibility of technology leakage proposed in this study will provide an opportunity to prevent technology Leakage from the viewpoint of enterprise and government in advance.