Comparison of C4.5 & Random Forest Based on AdaBoost For Determining Loan Eligibility Customer Funds

This research discusses the comparison between two data mining algorithms, namely Decision Tree C4.5 and Random Forest based on AdaBoost, in determining the creditworthiness of customer funds. The main objective of this research is to evaluate and compare the performance of the two algorithms in predicting loan eligibility based on customer data. Algorithm performance is measured using accuracy, precision, recall, and misclassification error metrics. The research results show that the AdaBoost-based Random Forest is superior with an accuracy of 78.86%, recall of 98.75%, and the lowest misclassification error of 21.14%. Meanwhile, Decision Tree C4.5 provides lower performance than AdaBoost-based Random Forest. This research recommends further exploration of other algorithms, such as Support Vector Machine (SVM) and Neural Networks, to obtain more optimal results in determining customer loan eligibility.

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Publication Details

Journal
SinkrOn
Published
2025-02-05
DOI
https://doi.org/10.33395/sinkron.v9i1.14499
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
article
Field-Weighted Citation Impact
0.00
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article

Comparison of C4.5 & Random Forest Based on AdaBoost For Determining Loan Eligibility Customer Funds

Lenny Lenny, Achmad Ridwan, Yennimar Yennimar, Violyn Violyn
SinkrOn
Financial Distress and Bankruptcy Prediction
article

Comparison of C4.5 & Random Forest Based on AdaBoost For Determining Loan Eligibility Customer Funds

Lenny Lenny, Achmad Ridwan, Yennimar Yennimar, Violyn Violyn
article en

Abstract

This research discusses the comparison between two data mining algorithms, namely Decision Tree C4.5 and Random Forest based on AdaBoost, in determining the creditworthiness of customer funds. The main objective of this research is to evaluate and compare the performance of the two algorithms in predicting loan eligibility based on customer data. Algorithm performance is measured using accuracy, precision, recall, and misclassification error metrics. The research results show that the AdaBoost-based Random Forest is superior with an accuracy of 78.86%, recall of 98.75%, and the lowest misclassification error of 21.14%. Meanwhile, Decision Tree C4.5 provides lower performance than AdaBoost-based Random Forest. This research recommends further exploration of other algorithms, such as Support Vector Machine (SVM) and Neural Networks, to obtain more optimal results in determining customer loan eligibility.

SinkrOnVol. 9(1)
Universitas Prima Indonesia (ID)
Openalex Percentile: Top 93%
Financial Distress and Bankruptcy Prediction
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