Definition of Misclassification Cost & Redistribution Strategy of Telecom Churn Analysis

Telecom churn prediction is one of the key factors which closely related to the development of telecommunications business. To solve the data imbalance problem exiting in this field, traditional researches always redistribute samples according to misclassification cost. But exiting researches in this area neither gave out the quantitative description of the misclassification cost nor set up a unified method for redistributing samples. To solve these problems, an original mathematical definition of misclassification cost for this domain is set up by taking telecom industry economic factors into consideration and a redistribute strategy based on this cost is drawn out. The relative experiment results demonstrate that, this strategy has effectively improved the accuracy of telecom churn prediction and lays a theoretical foundation for deeper research on the misclassification cost of this field.