›› 2018, Vol. 30 ›› Issue (12): 122-130.

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Research of Classifier Threshold and Expected Risk of Mobile Phone Replacement Based on the Misclassification Cost

Wang Chaofa, Sun Jingchun   

  1. School of Management, Xi'an Jiaotong University, Xi'an 710049
  • Received:2016-09-22 Online:2018-12-28 Published:2018-12-21

Abstract:

The traditional classification algorithm treats the correct prediction and the error prediction equally, ignores the subjective factors and can't control the error rate well. Based on the users' consumption data selected from Xi'an branch of a mobile communication company, this paper studies the threshold and expected risk of forecasting mobile phone replacement by using Logistic model with misclassification cost. We find that:the Logistic model with misclassification cost has a good classification effect; different misclassification costs correspond to different optimal thresholds, but the prediction accuracy is basically the same; classification with a traditional threshold of 0.5 not only reduces the accuracy of the forecast but also increases the expected risk; the greater the difference in classification costs between positive and negative categories, the higher the expected risk for the classifier to predict; there is a dynamic equilibrium and mutual restraint between the optimal classifier's value, the optimal threshold and the expected risk. Thus, these results not only provide a multi-dimensional analysis framework for data mining researchers, but also provide a decision-making reference for manufacturers and vendors.

Key words: misclassification cost, algorithms, mobile users, threshold