Show simple item record

dc.contributor.advisorScott, James Gordonen
dc.creatorMartin, Stephen Fredricken
dc.date.accessioned2012-08-16T14:46:20Zen
dc.date.available2012-08-16T14:46:20Zen
dc.date.created2012-05en
dc.date.issued2012-08-16en
dc.date.submittedMay 2012en
dc.identifier.urihttp://hdl.handle.net/2152/ETD-UT-2012-05-5428en
dc.descriptiontexten
dc.description.abstractThis goal of this project is to develop a set of business rules to mitigate risk related to a specific financial decision within the prepaid debit card industry. Under certain circumstances issuers of prepaid debit cards may need to decide if funds on hold can be released early for use by card holders prior to the final transaction settlement. After a brief introduction to the prepaid card industry and the financial risk associated with the early release of funds on hold, the paper presents the motivation to apply the CART (Classification and Regression Trees) method. The paper provides a tutorial of the CART algorithms formally developed by Breiman, Friedman, Olshen and Stone in the monograph Classification and Regression Trees (1984), as well as, a detailed explanation of the R programming code to implement the RPART function. (Therneau 2010) Special attention is given to parameter selection and the process of finding an optimal solution that balances complexity against predictive classification accuracy when measured against an independent data set through a cross validation process. Lastly, the paper presents an analysis of the financial risk mitigation based on the resulting business rules.en
dc.format.mimetypeapplication/pdfen
dc.language.isoengen
dc.subjectCARTen
dc.subjectClassification and Regression Treesen
dc.subjectBreimanen
dc.subjectRisken
dc.subjectPrepaiden
dc.subjectDebit cardsen
dc.subjectRollbacken
dc.subjectRen
dc.subjectRPARTen
dc.subjectCross validationen
dc.titleApplying Classification and Regression Trees to manage financial risken
dc.date.updated2012-08-16T14:46:30Zen
dc.identifier.slug2152/ETD-UT-2012-05-5428en
dc.contributor.committeeMemberCarvalho, Carlos M.en
dc.contributor.committeeMemberMarti, Nathan C.en
dc.description.departmentMathematicsen
dc.type.genrethesisen
thesis.degree.departmentMathematicsen
thesis.degree.disciplineStatisticsen
thesis.degree.grantorUniversity of Texas at Austinen
thesis.degree.levelMastersen
thesis.degree.nameMaster of Science in Statisticsen


Files in this item

Icon

This item appears in the following Collection(s)

Show simple item record