• Journal of Intelligence and Information Systems
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• v.25 no.1
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• pp.139-161
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• 2019

The utilization of the e-commerce market has become a common life style in today. It has become important part to know where and how to make reasonable purchases of good quality products for customers. This change in purchase psychology tends to make it difficult for customers to make purchasing decisions in vast amounts of information. In this case, the recommendation system has the effect of reducing the cost of information retrieval and improving the satisfaction by analyzing the purchasing behavior of the customer. Amazon and Netflix are considered to be the well-known examples of sales marketing using the recommendation system. In the case of Amazon, 60% of the recommendation is made by purchasing goods, and 35% of the sales increase was achieved. Netflix, on the other hand, found that 75% of movie recommendations were made using services. This personalization technique is considered to be one of the key strategies for one-to-one marketing that can be useful in online markets where salespeople do not exist. Recommendation techniques that are mainly used in recommendation systems today include collaborative filtering and content-based filtering. Furthermore, hybrid techniques and association rules that use these techniques in combination are also being used in various fields. Of these, collaborative filtering recommendation techniques are the most popular today. Collaborative filtering is a method of recommending products preferred by neighbors who have similar preferences or purchasing behavior, based on the assumption that users who have exhibited similar tendencies in purchasing or evaluating products in the past will have a similar tendency to other products. However, most of the existed systems are recommended only within the same category of products such as books and movies. This is because the recommendation system estimates the purchase satisfaction about new item which have never been bought yet using customer's purchase rating points of a similar commodity based on the transaction data. In addition, there is a problem about the reliability of purchase ratings used in the recommendation system. Reliability of customer purchase ratings is causing serious problems. In particular, 'Compensatory Review' refers to the intentional manipulation of a customer purchase rating by a company intervention. In fact, Amazon has been hard-pressed for these "compassionate reviews" since 2016 and has worked hard to reduce false information and increase credibility. The survey showed that the average rating for products with 'Compensated Review' was higher than those without 'Compensation Review'. And it turns out that 'Compensatory Review' is about 12 times less likely to give the lowest rating, and about 4 times less likely to leave a critical opinion. As such, customer purchase ratings are full of various noises. This problem is directly related to the performance of recommendation systems aimed at maximizing profits by attracting highly satisfied customers in most e-commerce transactions. In this study, we propose the possibility of using new indicators that can objectively substitute existing customer 's purchase ratings by using RFM multi-dimensional analysis technique to solve a series of problems. RFM multi-dimensional analysis technique is the most widely used analytical method in customer relationship management marketing(CRM), and is a data analysis method for selecting customers who are likely to purchase goods. As a result of verifying the actual purchase history data using the relevant index, the accuracy was as high as about 55%. This is a result of recommending a total of 4,386 different types of products that have never been bought before, thus the verification result means relatively high accuracy and utilization value. And this study suggests the possibility of general recommendation system that can be applied to various offline product data. If additional data is acquired in the future, the accuracy of the proposed recommendation system can be improved.

• Journal of Intelligence and Information Systems
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• v.26 no.1
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• pp.23-45
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• 2020

Big data is creating in a wide variety of fields such as medical care, manufacturing, logistics, sales site, SNS, and the dataset characteristics are also diverse. In order to secure the competitiveness of companies, it is necessary to improve decision-making capacity using a classification algorithm. However, most of them do not have sufficient knowledge on what kind of classification algorithm is appropriate for a specific problem area. In other words, determining which classification algorithm is appropriate depending on the characteristics of the dataset was has been a task that required expertise and effort. This is because the relationship between the characteristics of datasets (called meta-features) and the performance of classification algorithms has not been fully understood. Moreover, there has been little research on meta-features reflecting the characteristics of multi-class. Therefore, the purpose of this study is to empirically analyze whether meta-features of multi-class datasets have a significant effect on the performance of classification algorithms. In this study, meta-features of multi-class datasets were identified into two factors, (the data structure and the data complexity,) and seven representative meta-features were selected. Among those, we included the Herfindahl-Hirschman Index (HHI), originally a market concentration measurement index, in the meta-features to replace IR(Imbalanced Ratio). Also, we developed a new index called Reverse ReLU Silhouette Score into the meta-feature set. Among the UCI Machine Learning Repository data, six representative datasets (Balance Scale, PageBlocks, Car Evaluation, User Knowledge-Modeling, Wine Quality(red), Contraceptive Method Choice) were selected. The class of each dataset was classified by using the classification algorithms (KNN, Logistic Regression, Nave Bayes, Random Forest, and SVM) selected in the study. For each dataset, we applied 10-fold cross validation method. 10% to 100% oversampling method is applied for each fold and meta-features of the dataset is measured. The meta-features selected are HHI, Number of Classes, Number of Features, Entropy, Reverse ReLU Silhouette Score, Nonlinearity of Linear Classifier, Hub Score. F1-score was selected as the dependent variable. As a result, the results of this study showed that the six meta-features including Reverse ReLU Silhouette Score and HHI proposed in this study have a significant effect on the classification performance. (1) The meta-features HHI proposed in this study was significant in the classification performance. (2) The number of variables has a significant effect on the classification performance, unlike the number of classes, but it has a positive effect. (3) The number of classes has a negative effect on the performance of classification. (4) Entropy has a significant effect on the performance of classification. (5) The Reverse ReLU Silhouette Score also significantly affects the classification performance at a significant level of 0.01. (6) The nonlinearity of linear classifiers has a significant negative effect on classification performance. In addition, the results of the analysis by the classification algorithms were also consistent. In the regression analysis by classification algorithm, Naïve Bayes algorithm does not have a significant effect on the number of variables unlike other classification algorithms. This study has two theoretical contributions: (1) two new meta-features (HHI, Reverse ReLU Silhouette score) was proved to be significant. (2) The effects of data characteristics on the performance of classification were investigated using meta-features. The practical contribution points (1) can be utilized in the development of classification algorithm recommendation system according to the characteristics of datasets. (2) Many data scientists are often testing by adjusting the parameters of the algorithm to find the optimal algorithm for the situation because the characteristics of the data are different. In this process, excessive waste of resources occurs due to hardware, cost, time, and manpower. This study is expected to be useful for machine learning, data mining researchers, practitioners, and machine learning-based system developers. The composition of this study consists of introduction, related research, research model, experiment, conclusion and discussion.

• Journal of Intelligence and Information Systems
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• v.22 no.4
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• pp.177-192
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• 2016

Machine learning is a field of artificial intelligence. It refers to an area of computer science related to providing machines the ability to perform their own data analysis, decision making and forecasting. For example, one of the representative machine learning models is artificial neural network, which is a statistical learning algorithm inspired by the neural network structure of biology. In addition, there are other machine learning models such as decision tree model, naive bayes model and SVM(support vector machine) model. Among the machine learning models, we use SVM model in this study because it is mainly used for classification and regression analysis that fits well to our study. The core principle of SVM is to find a reasonable hyperplane that distinguishes different group in the data space. Given information about the data in any two groups, the SVM model judges to which group the new data belongs based on the hyperplane obtained from the given data set. Thus, the more the amount of meaningful data, the better the machine learning ability. In recent years, many financial experts have focused on machine learning, seeing the possibility of combining with machine learning and the financial field where vast amounts of financial data exist. Machine learning techniques have been proved to be powerful in describing the non-stationary and chaotic stock price dynamics. A lot of researches have been successfully conducted on forecasting of stock prices using machine learning algorithms. Recently, financial companies have begun to provide Robo-Advisor service, a compound word of Robot and Advisor, which can perform various financial tasks through advanced algorithms using rapidly changing huge amount of data. Robo-Adviser's main task is to advise the investors about the investor's personal investment propensity and to provide the service to manage the portfolio automatically. In this study, we propose a method of forecasting the Korean volatility index, VKOSPI, using the SVM model, which is one of the machine learning methods, and applying it to real option trading to increase the trading performance. VKOSPI is a measure of the future volatility of the KOSPI 200 index based on KOSPI 200 index option prices. VKOSPI is similar to the VIX index, which is based on S&P 500 option price in the United States. The Korea Exchange(KRX) calculates and announce the real-time VKOSPI index. VKOSPI is the same as the usual volatility and affects the option prices. The direction of VKOSPI and option prices show positive relation regardless of the option type (call and put options with various striking prices). If the volatility increases, all of the call and put option premium increases because the probability of the option's exercise possibility increases. The investor can know the rising value of the option price with respect to the volatility rising value in real time through Vega, a Black-Scholes's measurement index of an option's sensitivity to changes in the volatility. Therefore, accurate forecasting of VKOSPI movements is one of the important factors that can generate profit in option trading. In this study, we verified through real option data that the accurate forecast of VKOSPI is able to make a big profit in real option trading. To the best of our knowledge, there have been no studies on the idea of predicting the direction of VKOSPI based on machine learning and introducing the idea of applying it to actual option trading. In this study predicted daily VKOSPI changes through SVM model and then made intraday option strangle position, which gives profit as option prices reduce, only when VKOSPI is expected to decline during daytime. We analyzed the results and tested whether it is applicable to real option trading based on SVM's prediction. The results showed the prediction accuracy of VKOSPI was 57.83% on average, and the number of position entry times was 43.2 times, which is less than half of the benchmark (100 times). A small number of trading is an indicator of trading efficiency. In addition, the experiment proved that the trading performance was significantly higher than the benchmark.

• Journal of Intelligence and Information Systems
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• v.22 no.3
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• pp.1-21
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• 2016

IT-based subjective well-being (SWB) services, a main part of wellness IT, should measure the SWB state of individuals in an unrestrained, cost-effective manner. The dictionaries for sentiment analysis available in the market may be useful for this purpose, but obtaining proper sentiment values using only words from the sentiment lexicon is impossible; therefore, a new dictionary including wellness vocabulary is needed. The existing sentiment dictionaries link only a single sentiment value to a single sentiment word, although sentiment values may vary depending on personal traits. In this study, we develop an extended version of the SenticNet sentiment dictionary dubbed WellnessWordNet. SenticNet is considered the best and most expressive among the already existing sentiment dictionaries. Using the information provided by SenticNet, we created a database including the wellness states (estimated values) of stress, depression, and anger to develop the WellnessWordNet system. The accuracy of the system was validated through actual tests with live subjects. This study is unique and unprecedented in that i) an extended sentiment dictionary, WellnessWordNet, is developed; ii) values for wellness state language are offered; and iii) different sentiment values, namely contextual polarity, for people of the same gender or age group are suggested.

• Journal of Intelligence and Information Systems
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• v.9 no.1
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• pp.227-249
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• 2003

Prediction of corporate failure using past financial data is a well-documented topic. Early studies of bankruptcy prediction used statistical techniques such as multiple discriminant analysis, logit and probit. Recently, however, numerous studies have demonstrated that artificial intelligence such as neural networks can be an alternative methodology for classification problems to which traditional statistical methods have long been applied. In building neural network model, the selection of independent and dependent variables should be approached with great care and should be treated as model construction process. Irrespective of the efficiency of a teaming procedure in terms of convergence, generalization and stability, the ultimate performance of the estimator will depend on the relevance of the selected input variables and the quality of the data used. Approaches developed in statistical methods such as correlation analysis and stepwise selection method are often very useful. These methods, however, may not be the optimal ones for the development of neural network model. In this paper, we propose a genetic algorithms approach to find an optimal or near optimal input variables fur neural network modeling. The proposed approach is demonstrated by applications to bankruptcy prediction modeling. Our experimental results show that this approach increases overall classification accuracy rate significantly.

• Journal of Korea Society of Industrial Information Systems
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• v.16 no.4
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• pp.87-98
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• 2011

Detecting a moving object from videos and tracking it are basic and necessary preprocessing steps in many video systems like object recognition, context aware, and intelligent visual surveillance. In this paper, we propose a method that is able to detect a moving object quickly and accurately in a condition that background and light change in a real time. Furthermore, our system detects strongly an object in a condition that the target object is covered with other objects. For effective detection, effective Eigen-space and FCM are combined and employed, and a CONDENSATION algorithm is used to trace a detected object strongly. First, training data collected from a background image are linear-transformed using Principal Component Analysis (PCA). Second, an Eigen-background is organized from selected principal components having excellent discrimination ability on an object and a background. Next, an object is detected with FCM that uses a convolution result of the Eigen-vector of previous steps and the input image. Finally, an object is tracked by using coordinates of an detected object as an input value of condensation algorithm. Images including various moving objects in a same time are collected and used as training data to realize our system that is able to be adapted to change of light and background in a fixed camera. The result of test shows that the proposed method detects an object strongly in a condition having a change of light and a background, and partial movement of an object.

• Journal of Digital Convergence
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• v.18 no.7
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• pp.157-166
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• 2020

This study examines the status of major corruption in the public and private sectors in Korea. This study adopts the secondary data analysis method, and uses 'The Status of Corruption in Korean Society' released by Ipsos in March 2019. The annual difference analysis is conducted to examine the trend of major corruption, and the results are as follows. First, in the public sector, the number of conspicuous crimes, such as bribery, has decreased, but intelligent crimes that are not easily detected, such as abuse of authority, are increasing. In the private sector, embezzlement was on the decline, but breach of trust remained at a certain level. Second, from 2003 to 2017, the average annual change rate of major corruption in the public sector was 8.0%, while the private sector was 1.8%. Third, the public sector has seen a slight increase in corruption except in 2015, but the private sector has been declining since 2014. This study is different as it makes academic contributions by offering three anti-corruption measures; changing the culture of high power distance, changing the culture of low corruption perception, and abolishing the culture of impunity. Empirical studies using primary data that separate the two groups are required.

• Informatization Policy
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• v.24 no.3
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• pp.3-26
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• 2017

The amount of unstructured data generated online is increasing exponentially and the analysis of text data is being done in various fields. In order to identify the research trends on the platform government, the title, year, academic society, and abstract information of the academic papers on the subject of platform government were collected from the database of the domestic papers, DBPIA(www.dbpia.co.kr). The results of the existing research on the platform government and related fields were analyzed based on each stage of the national informatization promotion. The technology, service, and governance topics were extracted from papers on platform government and the trends of core topics were analyzed by year. Entering the era of the intelligent information society, this study has significance for providing the basis for defining a new role of government - the platform government that sets the stage for the private sector to lead the innovation, and plays the role of an 'enabler' and 'facilitator' instead. The purpose of this study is to understand the platform government research through objective analysis of its trends. Looking for future directions, this study will contribute to future research by providing reference materials.

• Journal of Broadcast Engineering
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• v.25 no.6
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• pp.973-979
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• 2020

This study aims to objectively and quantitatively determine the social emotion of empathy by collecting pupillary response. 52 subjects (26 men and 26 women) voluntarily participated in the experiment. After the measurement of the reference of 30 seconds, the experiment was divided into the task of imitation and spontaneously self-expression. The two subjects were interacted through facial expressions, and the pupil images were recorded. The pupil data was processed through binarization and circular edge detection algorithm, and outlier detection and removal technique was used to reject eye-blinking. The pupil size according to the empathy was confirmed for statistical significance with test of normality and independent sample t-test. Statistical analysis results, the pupil size was significantly different between empathy (M ± SD = 0.050 ± 1.817)) and non-empathy (M ± SD = 1.659 ± 1.514) condition (t(92) = -4.629, p = 0.000). The rule of empathy according to the pupil size was defined through discriminant analysis, and the rule was verified (Estimation accuracy: 75%) new 12 subjects (6 men and 6 women, mean age ± SD = 22.84 ± 1.57 years). The method proposed in this study is non-contact camera technology and is expected to be utilized in various virtual reality with smart glasses.

• Journal of Intelligence and Information Systems
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• v.29 no.1
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• pp.289-305
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• 2023

The rapid increase in the use of mobile devices is changing consumers' online shopping behavior. However, the difference in the effect on the conversion rate according to the time when consumers switch from a small screen to a large screen has not been sufficiently studied. In addition, the differences in the effect of device conversion on purchase performance according to the characteristics of each country's infrastructure have not been sufficiently studied. Against this background, this study aims to analyze whether the timing of switching from mobile devices to PC devices and the country's mobile Internet penetration rate are moderating the positive effect of device switching on purchase performance. For empirical analysis, Google Merchandise Store data was collected and 101,466 data from 130 countries were analyzed with a multilevel model. As a result of the analysis, consumers' device switching (i.e., mobile to PC) had a positive effect when it occurred in the middle of the consumer journey. However, it was analyzed that when device switching occurred at the later stage of the consumer journey, it had a negative effect on purchase performance. In addition, it was analyzed that the higher the mobile Internet penetration rate, the weaker the positive effect of consumer device conversion on purchase performance.