Affiliation:
1. University of Verona, Italy
Abstract
The chapter developed a tree-based method for credit scoring. It is useful because it helps lenders decide whether to grant or reject credit to their applicants. In particular, it proposes a credit scoring model based on boosted decision trees which is a technique consisting of an ensemble of several decision trees to form a single classifier. The analysis used three different publicly available datasets, and then the prediction accuracy of boosted decision trees is compared with the one of support vector machines method.
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