In a context of constant increase in competition and heightened regulatory pressure, accuracy, actuarial precision, as well as transparency and understanding of the tariff, are key issues in non-life insurance. Traditionally used generalized linear models (GLM) result in a multiplicative tariff that favors interpretability. With the rapid development of machine learning and deep learning techniques, actuaries and the rest of the insurance industry have adopted these techniques widely. However, there is a need to associate them with interpretability techniques. In this paper, our study focuses on introducing an Explainable Boosting Machine (EBM) model that combines intrinsically interpretable characteristics and high prediction performance. This approach is described as a glass-box model and relies on the use of a Generalized Additive Model (GAM) and a cyclic gradient boosting algorithm. It accounts for univariate and pairwise interaction effects between features and provides naturally explanations on them. We implement this approach on car insurance frequency and severity data and extensively compare the performance of this approach with classical competitors: a GLM, a GAM, a CART model and an Extreme Gradient Boosting (XGB) algorithm. Finally, we examine the interpretability of these models to capture the main determinants of claim costs.

This study investigates rare event detection on tabular data within binary classification. Standard techniques to handle class imbalance include SMOTE, which generates synthetic samples from the minority class. However, SMOTE is intrinsically designed for continuous input variables. In fact, despite SMOTE-NC-its default extension to handle mixed features (continuous and categorical variables)-very few works propose procedures to synthesize mixed features. On the other hand, many real-world classification tasks, such as in banking sector, deal with mixed features, which have a significant impact on predictive performances. To this purpose, we introduce MGS-GRF, an oversampling strategy designed for mixed features. This method uses a kernel density estimator with locally estimated full-rank covariances to generate continuous features, while categorical ones are drawn from the original samples through a generalized random forest. Empirically, contrary to SMOTE-NC, we show that MGS-GRF exhibits two important properties: (i) the coherence i.e. the ability to only generate combinations of categorical features that are already present in the original dataset and (ii) association, i.e. the ability to preserve the dependence between continuous and categorical features. We also evaluate the predictive performances of LightGBM classifiers trained on data sets, augmented with synthetic samples from various strategies. Our comparison is performed on simulated and public real-world data sets, as well as on a private data set from a leading financial institution. We observe that synthetic procedures that have the properties of coherence and association display better predictive performances in terms of various predictive metrics (PR and ROC AUC...), with MGS-GRF being the best one. Furthermore, our method exhibits promising results for the private banking application, with development pipeline being compliant with regulatory constraints.

We investigated the use of Empirical Mode Decomposition (EMD) combined with Gaussian Mixture Models (GMM), feature engineering and machine learning algorithms to optimize trading decisions. We used five, two, and one year samples of hourly candle data for GameStop, Tesla, and XRP (Ripple) markets respectively. Applying a 15 hour rolling window for each market, we collected several features based on a linear model and other classical features to predict the next hour's movement. Subsequently, a GMM filtering approach was used to identify clusters among these markets. For each cluster, we applied the EMD algorithm to extract high, medium, low and trend components from each feature collected. A simple thresholding algorithm was applied to classify market movements based on the percentage change in each market's close price. We then evaluated the performance of various machine learning models, including Random Forests (RF) and XGBoost, in classifying market movements. A naive random selection of trading decisions was used as a benchmark, which assumed equal probabilities for each outcome, and a temporal cross-validation approach was used to test models on 40%, 30%, and 20% of the dataset. Our results indicate that transforming selected features using EMD improves performance, particularly for ensemble learning algorithms like Random Forest and XGBoost, as measured by accumulated profit. Finally, GMM filtering expanded the range of learning algorithm and data source combinations that outperformed the top percentile of the random baseline.

As current group contribution (GC) methods are mostly proposed for a wide size-range of molecules, applying them to property prediction of small refrigerant molecules could lead to unacceptable errors. In this sense, for the design of novel refrigerants and refrigeration systems, tailoring GC-based models specifically fitted to refrigerant molecules is of great interest. In this work, databases of potential refrigerant molecules are first collected, focusing on five key properties related to the operational efficiency of refrigeration systems, namely normal boiling point, critical temperature, critical pressure, enthalpy of vaporization, and acentric factor. Based on tailored small-molecule groups, the GC method is combined with machine learning (ML) to model these performance-related properties. Following the development of GC-ML models, their performance is analyzed to highlight the potential group-to-property contributions. Additionally, the refrigerant property databases are extended internally and externally, based on which examples are presented to highlight the significance of the developed models.

The early detection and prediction of cardiovascular diseases are crucial for reducing the severe morbidity and mortality associated with these conditions worldwide. A multi-headed self-attention mechanism, widely used in natural language processing (NLP), is operated by Transformers to understand feature interactions in feature spaces. However, the relationships between various features within biological systems remain ambiguous in these spaces, highlighting the necessity of early detection and prediction of cardiovascular diseases to reduce the severe morbidity and mortality with these conditions worldwide. We handle this issue with CardioTabNet, which exploits the strength of tab transformer to extract feature space which carries strong understanding of clinical cardiovascular data and its feature ranking. As a result, performance of downstream classical models significantly showed outstanding result. Our study utilizes the open-source dataset for heart disease prediction with 1190 instances and 11 features. In total, 11 features are divided into numerical (age, resting blood pressure, cholesterol, maximum heart rate, old peak, weight, and fasting blood sugar) and categorical (resting ECG, exercise angina, and ST slope). Tab transformer was used to extract important features and ranked them using random forest (RF) feature ranking algorithm. Ten machine-learning models were used to predict heart disease using selected features. After extracting high-quality features, the top downstream model (a hyper-tuned ExtraTree classifier) achieved an average accuracy rate of 94.1% and an average Area Under Curve (AUC) of 95.0%. Furthermore, a nomogram analysis was conducted to evaluate the model's effectiveness in cardiovascular risk assessment. A benchmarking study was conducted using state-of-the-art models to evaluate our transformer-driven framework.

Predicting microporosity and permeability in clastic reservoirs is a challenge in reservoir quality assessment, especially in formations where direct measurements are difficult or expensive. These reservoir properties are fundamental in determining a reser voir's capacity for fluid storage and transmission, yet conventional methods for evaluating them, such as Mercury Injection Capillary Pressure (MICP) and Scanning Electron Microscopy (SEM), are resource - intensive. The aim of this study is to develop a cost - effective machine learning model to predict complex reservoir properties using readily available field data and basic laboratory analyses. A Random Forest classifier was employed, utilizing key geological parameters such as porosity, grain size distri bution, and spectral gamma - ray (SGR) measurements. An uncertainty analysis was applied to account for natural variability, expanding the dataset, and enhancing the model's robustness. The model achieved a high level of accuracy in predicting microporosity (93%) and permeability levels (88%). By using easily obtainable data, this model reduces the reliance on expensive laboratory methods, making it a valuable tool for early - stage exploration, especially in remote or offshore environments. The integration of machine learning with uncertainty analysis provides a reliable and cost - effective approach for evaluating key reservoir properties in siliciclastic formations. This model offers a practical solution to improve reservoir quality assessments, enabling more i nformed decision - making and optimizing exploration efforts.

Road fatalities pose significant public safety and health challenges worldwide, with pedestrians being particularly vulnerable in vehicle-pedestrian crashes due to disparities in physical and performance characteristics. This study employs explainable artificial intelligence (XAI) to identify key factors contributing to pedestrian fatalities across the five U.S. states with the highest crash rates (2018-2022). It compares them to the five states with the lowest fatality rates. Using data from the Fatality Analysis Reporting System (FARS), the study applies machine learning techniques-including Decision Trees, Gradient Boosting Trees, Random Forests, and XGBoost-to predict contributing factors to pedestrian fatalities. To address data imbalance, the Synthetic Minority Over-sampling Technique (SMOTE) is utilized, while SHapley Additive Explanations (SHAP) values enhance model interpretability. The results indicate that age, alcohol and drug use, location, and environmental conditions are significant predictors of pedestrian fatalities. The XGBoost model outperformed others, achieving a balanced accuracy of 98 %, accuracy of 90 %, precision of 92 %, recall of 90 %, and an F1 score of 91 %. Findings reveal that pedestrian fatalities are more common in mid-block locations and areas with poor visibility, with older adults and substance-impaired individuals at higher risk. These insights can inform policymakers and urban planners in implementing targeted safety measures, such as improved lighting, enhanced pedestrian infrastructure, and stricter traffic law enforcement, to reduce fatalities and improve public safety.

Accurate prediction of food delivery times significantly impacts customer satisfaction, operational efficiency, and profitability in food delivery services. However, existing studies primarily utilize static historical data and often overlook dynamic, real-time contextual factors crucial for precise prediction, particularly in densely populated Indian cities. This research addresses these gaps by integrating real-time contextual variables such as traffic density, weather conditions, local events, and geospatial data (restaurant and delivery location coordinates) into predictive models. We systematically compare various machine learning algorithms, including Linear Regression, Decision Trees, Bagging, Random Forest, XGBoost, and LightGBM, on a comprehensive food delivery dataset specific to Indian urban contexts. Rigorous data preprocessing and feature selection significantly enhanced model performance. Experimental results demonstrate that the LightGBM model achieves superior predictive accuracy, with an R2 score of 0.76 and Mean Squared Error (MSE) of 20.59, outperforming traditional baseline approaches. Our study thus provides actionable insights for improving logistics strategies in complex urban environments. The complete methodology and code are publicly available for reproducibility and further research.

Orthogonal-split trees perform well, but evidence suggests oblique splits can enhance their performance. This paper explores optimizing high-dimensional $s$-sparse oblique splits from $\{(\vec{w}, \vec{w}^{\top}\boldsymbol{X}_{i}) : i\in \{1,\dots, n\}, \vec{w} \in \mathbb{R}^p, \| \vec{w} \|_{2} = 1, \| \vec{w} \|_{0} \leq s \}$ for growing oblique trees, where $ s $ is a user-defined sparsity parameter. We establish a connection between SID convergence and $s_0$-sparse oblique splits with $s_0\ge 1$, showing that the SID function class expands as $s_0$ increases, enabling the capture of more complex data-generating functions such as the $s_0$-dimensional XOR function. Thus, $s_0$ represents the unknown potential complexity of the underlying data-generating function. Learning these complex functions requires an $s$-sparse oblique tree with $s \geq s_0$ and greater computational resources. This highlights a trade-off between statistical accuracy, governed by the SID function class size depending on $s_0$, and computational cost. In contrast, previous studies have explored the problem of SID convergence using orthogonal splits with $ s_0 = s = 1 $, where runtime was less critical. Additionally, we introduce a practical framework for oblique trees that integrates optimized oblique splits alongside orthogonal splits into random forests. The proposed approach is assessed through simulations and real-data experiments, comparing its performance against various oblique tree models.

We develop Clustered Random Forests, a random forests algorithm for clustered data, arising from independent groups that exhibit within-cluster dependence. The leaf-wise predictions for each decision tree making up clustered random forests takes the form of a weighted least squares estimator, which leverage correlations between observations for improved prediction accuracy. Clustered random forests are shown for certain tree splitting criteria to be minimax rate optimal for pointwise conditional mean estimation, while being computationally competitive with standard random forests. Further, we observe that the optimality of a clustered random forest, with regards to how (population level) optimal weights are chosen within this framework i.e. those that minimise mean squared prediction error, vary under covariate distribution shift. In light of this, we advocate weight estimation to be determined by a user-chosen covariate distribution with respect to which optimal prediction or inference is desired. This highlights a key difference in behaviour, between correlated and independent data, with regards to nonparametric conditional mean estimation under covariate shift. We demonstrate our theoretical findings numerically in a number of simulated and real-world settings.