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Binary classification is highly used in credit scoring in the estimation of probability of default. The validation of such predictive models is based both on rank ability, and also on calibration (i.e. how accurately the probabilities…

Econometrics · Economics 2017-10-25 Pedro G. Fonseca , Hugo D. Lopes

This paper studies the consequences of capturing non-linear dependence among the covariates that drive the default of different obligors and the overall riskiness of their credit portfolio. Joint default modeling is, without loss of…

Risk Management · Quantitative Finance 2023-09-06 Margherita Doria , Elisa Luciano , Patrizia Semeraro

Outlier detection and cleaning are essential steps in data preprocessing to ensure the integrity and validity of data analyses. This paper focuses on outlier points within individual trajectories, i.e., points that deviate significantly…

Databases · Computer Science 2025-11-26 Mariana M Garcez Duarte , Mahmoud Sakr

Selecting techniques is a crucial element of the business analysis approach planning in IT projects. Particular attention is paid to the choice of techniques for requirements elicitation. One of the promising methods for selecting…

Software Engineering · Computer Science 2023-08-22 Denys Gobov , Olga Solovei

The presence of outliers is prevalent in machine learning applications and may produce misleading results. In this paper a new method for dealing with outliers and anomal samples is proposed. To overcome the outlier issue, the proposed…

Machine Learning · Computer Science 2016-07-05 Parsa Bagherzadeh , Hadi Sadoghi Yazdi

The effectiveness of machine learning in evaluating the creditworthiness of loan applicants has been demonstrated for a long time. However, there is concern that the use of automated decision-making processes may result in unequal treatment…

Machine Learning · Computer Science 2023-06-23 Darie Moldovan

Globally, two billion people and more than half of the poorest adults do not use formal financial services. Consequently, there is increased emphasis on developing financial technology that can facilitate access to financial products for…

Social and Information Networks · Computer Science 2020-01-30 María Óskarsdóttir , Cristián Bravo , Carlos Sarraute , Bart Baesens , Jan Vanthienen

Motivated by recent applications of sequential decision making in matching markets, in this paper we attempt at formulating and abstracting market designs for P2P lending. We describe a paradigm to set the stage for how peer to peer…

Computer Science and Game Theory · Computer Science 2023-08-08 Soumajyoti Sarkar

The ability to collect and store ever more massive databases has been accompanied by the need to process them efficiently. In many cases, most observations have the same behavior, while a probable small proportion of these observations are…

Statistics Theory · Mathematics 2021-09-21 Myrto Limnios , Nathan Noiry , Stéphan Clémençon

This note investigates the problem of detecting outliers in longitudinal data. It compares well-known methods used in official statistics with proposals from the fields of data mining and machine learning that are based on the distance…

Methodology · Statistics 2025-07-30 Marcello D'Orazio

In the realm of unsupervised image outlier detection, assigning outlier scores holds greater significance than its subsequent task: thresholding for predicting labels. This is because determining the optimal threshold on non-separable…

Computer Vision and Pattern Recognition · Computer Science 2024-07-16 Zhonghang Liu , Panzhong Lu , Guoyang Xie , Zhichao Lu , Wen-Yan Lin

Credit card fraud detection remains a critical challenge in financial security, with machine learning models like XGBoost(eXtreme gradient boosting) emerging as powerful tools for identifying fraudulent transactions. However, the inherent…

Machine Learning · Computer Science 2024-12-11 Siyaxolisa Kabane

The combination of the Internet of Things and the Edge Computing gives many opportunities to support innovative applications close to end users. Numerous devices present in both infrastructures can collect data upon which various processing…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-03-02 Kostas Kolomvatsos , Christos Anagnostopoulos

The boom of DL technology leads to massive DL models built and shared, which facilitates the acquisition and reuse of DL models. For a given task, we encounter multiple DL models available with the same functionality, which are considered…

Software Engineering · Computer Science 2021-03-10 Linghan Meng , Yanhui Li , Lin Chen , Zhi Wang , Di Wu , Yuming Zhou , Baowen Xu

Outlier detection is an important problem occurring in a wide range of areas. Outliers are the outcome of fraudulent behaviour, mechanical faults, human error, or simply natural deviations. Many data mining applications perform outlier…

Machine Learning · Computer Science 2025-10-28 Juan A. Lara , David Lizcano , Víctor Rampérez , Javier Soriano

Modern multi-centre randomized controlled trials (MCRCTs) collect massive amounts of tabular data, and are monitored intensively for irregularities by humans. We began by empirically evaluating 6 modern machine learning-based outlier…

Machine Learning · Computer Science 2023-11-10 Walter Nelson , Jonathan Ranisau , Jeremy Petch

Outlier detection amounts to finding data points that differ significantly from the norm. Classic outlier detection methods are largely designed for single data type such as continuous or discrete. However, real world data is increasingly…

Machine Learning · Statistics 2016-08-18 Kien Do , Truyen Tran , Dinh Phung , Svetha Venkatesh

This paper proposes a two-stage scoring approach to help lenders decide their fund allocations in the peer-to-peer (P2P) lending market. The existing scoring approaches focus on only either probability of default (PD) prediction, known as…

Machine Learning · Computer Science 2018-10-10 Kaveh Bastani , Elham Asgari , Hamed Namavari

Output thresholding is the technique to search for the best threshold to be used during inference for any classifiers that can produce probability estimates on train and testing datasets. It is particularly useful in high imbalance…

Machine Learning · Computer Science 2024-05-21 Baran Koseoglu , Luca Traverso , Mohammed Topiwalla , Egor Kraev , Zoltan Szopory

Credit scoring models support loan approval decisions in the financial services industry. Lenders train these models on data from previously granted credit applications, where the borrowers' repayment behavior has been observed. This…