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Data Mining and Knowledge Discovery

, Volume 17, Issue 2, pp 283–316 | Cite as

Pessimistic cost-sensitive active learning of decision trees for profit maximizing targeting campaigns

  • Lior RokachEmail author
  • Lihi Naamani
  • Armin Shmilovici
Article

Abstract

In business applications such as direct marketing, decision-makers are required to choose the action which best maximizes a utility function. Cost-sensitive learning methods can help them achieve this goal. In this paper, we introduce Pessimistic Active Learning (PAL). PAL employs a novel pessimistic measure, which relies on confidence intervals and is used to balance the exploration/exploitation trade-off. In order to acquire an initial sample of labeled data, PAL applies orthogonal arrays of fractional factorial design. PAL was tested on ten datasets using a decision tree inducer. A comparison of these results to those of other methods indicates PAL’s superiority.

Keywords

Cost-sensitive learning Reinforcement learning Active learning Direct marketing Decision trees Design of experiments 

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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Department of Information System EngineeringBen-Gurion University of the NegevBeer-ShevaIsrael
  2. 2.Deutsche Telekom Laboratories at Ben-Gurion UniversityBen-Gurion University of the NegevBeer-ShevaIsrael

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