• Journal of the Korean Data and Information Science Society
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• v.19 no.3
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• pp.751-759
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• 2008

Mixtures of factor analyzers(MFA) is useful to model the distribution of high-dimensional data on much lower dimensional space where the number of observations is very large relative to their dimension. Mixtures of common factor analyzers(MCFA) can reduce further the number of parameters in the specification of the component covariance matrices as the number of classes is not small. Moreover, the factor scores of MCFA can be displayed in low-dimensional space to distinguish the groups. We propose the factor scores of MCFA as new low-dimensional features for classification of high-dimensional data. Compared with the conventional dimension reduction methods such as principal component analysis(PCA) and canonical covariates(CV), the proposed factor score was shown to have higher correct classification rates for three real data sets when it was used in parametric and nonparametric classifiers.

• Journal of the Korean Data and Information Science Society
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• v.23 no.2
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• pp.235-245
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• 2012

Logistic discrimination is an useful statistical technique for quantitative analysis of financial service industry. Especially it is not only easy to be implemented, but also has good classification rate. Generalized additive model is useful for credit scoring since it has the same advantages of logistic discrimination as well as accounting ability for the nonlinear effects of the explanatory variables. It may, however, need too many additive terms in the model when the number of explanatory variables is very large and there may exist dependencies among the variables. Mixtures of factor analyzers can be used for dimension reduction of high-dimensional feature. This study proposes to use the low-dimensional factor scores of mixtures of factor analyzers as the new features in the generalized additive model. Its application is demonstrated in the classification of some real credit scoring data. The comparison of correct classification rates of competing techniques shows the superiority of the generalized additive model using factor scores.