|Table of Contents|

[1] Zhao Wei, He Jianmin, Wang Chunlin, Chen Jinbo, et al. Application of a cost-sensitive methodfor churn prediction in telecommunication industry [J]. Journal of Southeast University (English Edition), 2007, 23 (1): 135-138. [doi:10.3969/j.issn.1003-7985.2007.01.027]
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Application of a cost-sensitive methodfor churn prediction in telecommunication industry()
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Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:
23
Issue:
2007 1
Page:
135-138
Research Field:
Economy and Management
Publishing date:
2007-03-30

Info

Title:
Application of a cost-sensitive methodfor churn prediction in telecommunication industry
Author(s):
Zhao Wei He Jianmin Wang Chunlin Chen Jinbo
School of Economics and Management, Southeast University, Nanjing 210096, China
Keywords:
cost-sensitive learning C4.5 telecommunication industry customer churn
PACS:
F626;TP391
DOI:
10.3969/j.issn.1003-7985.2007.01.027
Abstract:
To deal with the data mining problem of asymmetry misclassification cost, an innovative churn prediction method is proposed based on existing churn prediction research.This method adjusts the misclassification cost based on the C4.5 decision tree as a baseline classifier, which can obtain the prediction model with a minimum error rate based on the assumption that all misclassifications have the same cost, to realize cost-sensitive learning.Results from customer data of a certain Chinese telecommunication company and the fact that the churners and the non-churners have different misclassification costs demonstrate that by altering the sampling ratio of churners and non-churners, this cost-sensitive learning method can considerably reduce the total misclassification cost produced by traditional classification methods.This method can also play an important role in promoting core competence of Chinese telecommunication industry.

References:

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Memo

Memo:
Biographies: Zhao Wei(1980—), male, graduate;He Jianmin(corresponding author), male, professor, nj.jian@public1.ptt.js.cn.
Last Update: 2007-03-20