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Detecting Errors in Foreign Trade Transactions: Dealing with Insufficient Data
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Detecting Errors in Foreign Trade Transactions: Dealing with Insufficient Data
Luis Torgo23, 24 , Welma Pereira23 and Carlos Soares23, 25 
| (23) |
LIAAD-INESC Porto, Univ. of Porto, R. Ceuta, 118, 6., 4050-190 Porto, Portugal |
| (24) |
Faculdade de Ciências, University of Porto, |
| (25) |
Faculdade de Economia, University of Porto, |
Abstract
This paper describes a data mining approach to the problem of detecting erroneous foreign trade transactions in data collected
by the Portuguese Institute of Statistics (INE). Erroneous transactions are a minority, but still they have an important impact
on the official statistics produced by INE. Detecting these rare errors is a manual, time-consuming task, which is constrained
by a limited amount of available resources (e.g. financial, human). These constraints are common to many other data analysis
problems (e.g. fraud detection). Our previous work addresses this issue by producing a ranking of outlyingness that allows
a better management of the available resources by allocating them to the most relevant cases. It is based on an adaptation
of hierarchical clustering methods for outlier detection. However, the method cannot be applied to articles with a small number
of transactions. In this paper, we complement the previous approach with some standard statistical methods for outlier detection
for handling articles with few transactions. Our experiments clearly show its advantages in terms of the criteria outlined
by INE for considering any method applicable to this business problem. The generality of the approach remains to be tested
in other problems which share the same constraints (e.g. fraud detection).
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