Application of Data Mining Algorithm to Recipient of Motorcycle Installment

Abstract

The study was conducted in the subsidiaries that provide services of finance related to the purchase of a motorcycle on credit. At the time of applying, consumers enter their personal data. Based on the personal data, it will be known whether the consumer credit data is approved or rejected. From 224 consumer data obtained, it is known that the number of consumers whose applications are approved is 87% or about 217 consumers and consumers whose application is rejected is 16% or as much as 6 consumers. Acceptance of motorcycle financing on credit by using the method of applying the algorithm through CRIS-P DM is the industry standard in the processing of data mining. The algorithm used in the decision making is the algorithm C4.5. The results obtained previously, the level of accuracy is measured with the Confusion Matrix and Receiver Operating characteristic (ROC). Evaluation of the Confusion Matrix is intended to seek the value of accuracy, precision value, and the value of recall data. While the Receiver Operating Characteristic (ROC) is used to find data tables and comparison Area Under Curve (AUC).

Keywords

• motorcycle financing credit, CRISP DM, data mining, algorithms C4.5, Confusion Matrix, ROC