The Math Forum

Search All of the Math Forum:

Views expressed in these public forums are not endorsed by NCTM or The Math Forum.

Math Forum » Discussions » sci.math.* »

Notice: We are no longer accepting new posts, but the forums will continue to be readable.

Topic: Optimization Challenge
Replies: 1   Last Post: Nov 7, 2006 11:28 AM

Advanced Search

Back to Topic List Back to Topic List Jump to Tree View Jump to Tree View

Posts: 102
Registered: 6/3/05
Re: Optimization Challenge
Posted: Nov 7, 2006 11:28 AM
  Click to see the message monospaced in plain text Plain Text   Click to reply to this topic Reply

Using common sense, you'd review the suspicious transactions with higher
dollar amounts first.

"Rob" <> wrote in message
>I have an optimization problem that I would appreciate some help on.
> First for the background...
> 1. I have millions of purchase transactions.
> 2. Each transaction is scored for its probability of being fraudulent.
> To keep things simple, we will say that a transaction that has a 63%
> chance of being fraudulent is scored 63, 22% is scored 22, etc., with
> the score ranging from 0 to 100.
> 3. Each transaction also has a dollar amount associated with it. As
> you might expect, this ranges from under one dollar to over a million
> dollars.
> 4. The distribution of the transactions by score is almost logarithmic
> in that for every high-risk transaction there are literally thousands
> of low risk transactions. In other words, the vast majority of
> transactions are not fraudulent.
> Now the objective...
> The objective is to:
> 1. Minimize the dollar amount of losses due to fraud.
> 2. While minimizing the number of transactions that must be reviewed.
> I have Base SAS 9.1.3 and SAS Stat available. Your thoughts are deeply
> appreciated.

Point your RSS reader here for a feed of the latest messages in this topic.

[Privacy Policy] [Terms of Use]

© The Math Forum at NCTM 1994-2018. All Rights Reserved.