A Machine Learning Approach for Prediction Analysis in Data Mining

Machine learning is an emerging technique for building analytic models for machines to "learn" from data and be able to do predictive analysis. The ability of machines to "learn" and do predictive analysis is very important in this era of big data and it has a wide range of application areas. For instance, banks and financial institutions are sometimes faced with the challenge of what risk factors to consider when advancing credit/loans to customers. For several features/attributes of the customers are normally taken into consideration, but most of these features have little predictive effect on the credit worthiness or otherwise of the customer. Furthermore, a robust and effective automated bank credit risk score that can aid in the prediction of customer credit worthiness very accurately is still a major challenge facing many banks. In this paper, we examine a real bank credit data and conduct several machine learning algorithms on the data for comparative analysis and to choose which algorithms are the best fit for learning bank credit data. The algorithms gave over 80% accuracy in prediction. Machine Learning is a branch of Artificial Intelligence that gives systems the ability to learn automatically and improve themselves from the experience without being explicitly programmed or without intervention of human. Its main aim is to make computers learn automatically from the experience. The goal of machine learning is to understand the structure of data and fir that data into models that can be understood and utilized by people. Although machine learning is a field of computer science, it differs from traditional computational approaches. In traditional computing, algorithms are sets of explicitly programmed instructions used by computers to calculate or solve any problem. Machine learning algorithms instead allow for computers to train on data inputs and use statistical analysis in order to output values that fall within a specific range. Because of this, machine learning facilitates computers in building models from sample data in order to automate decision making processes based on data inputs. Machine learning is a continuously developing field