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Abstract ▼ AI-Helper

In this study, the performance of the CART(Classification and Regression Tree) is compared with that of discriminant analysis method. In most experiments using bank data, discriminant analysis shows better performance in terms of the total cost. In contrast, most experiments using insurance data ...

In this study, the performance of the CART(Classification and Regression Tree) is compared with that of discriminant analysis method. In most experiments using bank data, discriminant analysis shows better performance in terms of the total cost. In contrast, most experiments using insurance data show that the CART is better than discriminant analysis in terms of the total cost. The contradictory result are analysed by using the characteristics of the data sets. The performances of both the Classification and Regression Tree and discriminant analysis depend on the parameters:failure prior probability, data used, type I error, type II error cost, and validation method.