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Partitioning for Profit: An Empirical Study of Methods for Handling Unequal Costs of Error in Predictive Data Mining
Authors:Alan S. Abrahams  Adrian Becker
Affiliation:(1) Department of Operations and Information Management, The Wharton School, University of Pennsylvania, Philadelphia, PA, USA;(2) Department of Systems Engineering, School of Engineering and Applied Science, University of Pennsylvania, Philadelphia, PA, USA
Abstract:This paper expands prior work on the Sequential Binary Programming (SBP) algorithm as a framework for cost-sensitive classification. The field of cost-sensitive learning has provided a number of methods to adapt predictive data mining from engineering and hard science applications to those in commerce. This discussion will test theoretical limitations of classical cost-sensitive algorithms empirically and outline the appropriate conditions under which various methods (specifically SBP) should be implemented in favor of others.
Keywords:data mining  decision trees  optimization  target marketing
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