Bankruptcy prediction using memetic algorithm

Abstract

This paper proposes a new memetic algorithm using Cuckoo search algorithm and Particle Swarm Optimization algorithm. Training set is fed to the proposed method to get trained. The effectiveness of the proposed method is evaluated using three bankruptcy viz., Spanish banks, Turkish banks and US banks and three benchmark datasets namely, Iris, WBC and Wine datasets. We performed 10 Fold Cross Validation testing and observed that the results obtained by the proposed method in terms of the sensitivity, specificity and accuracy are encouraging when compared to that of the baseline decision tree.