THE UNIVERSITY OF HONG KONG

DEPARTMENT OF COMPUTER SCIENCE

FITE7410 Financial Fraud Analytics

First Semester, 2023-2024

Assignment 2

(Due Date: 13 Nov, 2023 (Mon) 23:59)

Assessment Criteria:

• Plagiarism: Please follow the guidelines laid down by our department.

• You are allowed to discuss the assignment with your classmates; however, direct copy and paste is PROHIBITED and would be considered as PLAGIARISM.

• Assignments would be marked based on the logic, presentation and understanding of the problem, not only on accuracy.

• LATE PENALTIES: 50% of assignment marks will be deducted for late submissions.  0 marks if the submission is later than 2 weeks.

1. (50%) Any TWO Supervised Learning Algorithm

a. Download the ENRON dataset (which was used in Assignment 1)

b. Using the R package, develop a fraud detection model using any TWO supervised learning algorithms.

c. Please refer to the provided R program of a fraud detection model using TWO sample supervised learning algorithms

2. (50%) Write an essay of not more than 2 pages on the following:

Based on the results of your fraud detection models developed in (1) above:

a. Describe the performances of the 2 fraud detection models based on the results; and

b. Explain which one is more suitable for this case and why from a practical perspective by citing examples.

3. Submission on Moodle:

a. R language script

b. A pdf version report