Detecting Credit Card Fraud: A Machine Learning Approach
Statistical Treatment
1.
2. Frequency and Percentage Distribution
Used to determine the percentage usually for
data on profile(e.g. level, age, gender, etc.)
Formula:
Where: % = Percent
f = Frequency
N = Number of cases
3. Mean
Used to get average or central value (e.g.
level, extent, status, etc.)
Formula:
4. T-test
Used to determine two (2) variable means
which differ significantly or to test the
significant difference between 2 variable
means
Analysis of Variance (ANOVA)
Used to find out if the frequency of two or
more variables in the study differ significantly
or test the significant difference among several
groups
5. Pearson Product – Moment Correlation
Coefficient
Used to find the degree of the association of
two sets of variables, X and Y or to test the
significant relationship between the two
variables
Multiple Correlation
Used to test if the independent variables have
influence on the dependent variables
6. Multiple Regression
Used to predict, singly or in combination, from
among the independent variables the
dependent variables
