Application of Factor Sensitivity Analysis Using Random Forest Model in Investment DecisionsTaking the Semiconductor Sector for Example

The semiconductor industry is the key field of the countrys scientific and technological innovation and industrial transformation and upgrading. Sensitivity analysis by random forest model can reflect the influence of input variables on the output response. Through sensitivity analysis, 32 financial factors will be considered and the weight coefficients affecting investors' investment decisions in the semiconductor industry will be determined and ranked using the random forest model. The research results show that mean deviation, Research & Development expense and other factors play a high weight in the investment decision of semiconductor companies. Based on the above research, it is effectively judge the profitability of all listed companies in the semiconductor industry according to the factors in the secondary factor pool. The application of the Random Forest model in the semiconductor sector provides valuable insights into key factors influencing investment returns.

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Publication Details

Journal
Applied and Computational Engineering
Published
2024-12-19
DOI
https://doi.org/10.54254/2755-2721/2025.18523
Primary Topic
Advanced Decision-Making Techniques
Type
article
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article

Application of Factor Sensitivity Analysis Using Random Forest Model in Investment DecisionsTaking the Semiconductor Sector for Example

Wei Jiang
Applied and Computational Engineering
Advanced Decision-Making Techniques
article

Application of Factor Sensitivity Analysis Using Random Forest Model in Investment DecisionsTaking the Semiconductor Sector for Example

Wei Jiang
article en

Abstract

The semiconductor industry is the key field of the countrys scientific and technological innovation and industrial transformation and upgrading. Sensitivity analysis by random forest model can reflect the influence of input variables on the output response. Through sensitivity analysis, 32 financial factors will be considered and the weight coefficients affecting investors' investment decisions in the semiconductor industry will be determined and ranked using the random forest model. The research results show that mean deviation, Research & Development expense and other factors play a high weight in the investment decision of semiconductor companies. Based on the above research, it is effectively judge the profitability of all listed companies in the semiconductor industry according to the factors in the secondary factor pool. The application of the Random Forest model in the semiconductor sector provides valuable insights into key factors influencing investment returns.

Applied and Computational EngineeringVol. 115(1)
Zhejiang Wanli University (CN), Institute of Economics (CN)
Industry, innovation and infrastructure
Openalex Percentile: Top 63%
Advanced Decision-Making Techniques
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