Open Access

ABSTRACT

Risk modeling by CHAID decision tree algorithm

A.S. Koyuncugil¹, N. Ozgulbas²

1 Research Department Capital Markets Board of Turkey Ankara, Turkey
2 Department of Healthcare Management Baskent University Ankara, Turkey

The International Conference on Computational & Experimental Engineering and Sciences 2009, 11(2), 39-46. https://doi.org/10.3970/icces.2009.011.039

Abstract

In this paper, a data mining model for detecting financial and operational risk indicators by CHAID Decision Tree is presenting. The identification of the risk factors by clarifying the relationship between the variables defines the discovery of knowledge from the financial and operational variables. Automatic and estimation oriented information discovery process coincides the definition of data mining. During the formation of model; an easy to understand, easy to interpret and easy to apply utilitarian model that is far from the requirement of theoretical background is targeted by the discovery of the implicit relationships between the data and the identification of effect level of every factor.

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Keywords

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