Title: Enhancement of classification techniques using principal component analysis and class imbalance handling methods in credit card defaulter detection

Authors: Abhishek Agarwal; Amit Rana; Neeta Verma; Karan Gupta

Addresses: Computer Science and Engineering, Inderprastha Engineering College, Ghaziabad, Uttar Pradesh, 201005, India ' Computer Science and Engineering, Inderprastha Engineering College, Ghaziabad, Uttar Pradesh, 201005, India ' Computer Science and Engineering, Inderprastha Engineering College, Ghaziabad, Uttar Pradesh, 201005, India ' Computer Science and Engineering, Inderprastha Engineering College, Ghaziabad, Uttar Pradesh, 201005, India

Abstract: The following research reveals the significance of modified classification in estimating new trends. Rigorous evaluation of different classification algorithms viz. logistic regression, decision tree, K-nearest neighbour (KNN) and Naive Bayesian are explored. These findings forecast the finest techniques for discovery of potential defaulters. Our motive is to compare the performance measures between original dataset and original dataset on which principal component is applied. Different algorithms can be compared on the basis of various criterions such as accuracy, precision, F1-score, recall, ROC. We proceeded by applying a general data imbalance handling technique such as smote technique and near miss technique. A comparison is then drawn between the modified dataset with the principle component analysis applied and the imbalance in the original dataset being corrected with the help of under sampling and oversampling. The comparison helps us identifying the best among dimensionality reduction and data imbalance handling techniques on the chosen dataset.

Keywords: decision tree; KNN; K-nearest neighbour; logistic regression; Naive Bayesian; principle component analysis; synthetic minority oversampling technique; near miss technique.

DOI: 10.1504/IJFE.2021.10040640

International Journal of Forensic Engineering, 2021 Vol.5 No.1, pp.1 - 18

Received: 17 Jul 2020
Accepted: 26 Sep 2020

Published online: 03 Sep 2021 *

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