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DOI: 10.14569/IJACSA.2022.0131284
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Research on the Application of Improved Decision Tree Algorithm based on Information Entropy in the Financial Management of Colleges and Universities

Author 1: Huirong Zhao

International Journal of Advanced Computer Science and Applications(IJACSA), Volume 13 Issue 12, 2022.

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Abstract: In the era of information technology, the work relies on information technology to generate a huge amount of data and information. Among them, the financial data information of universities is growing exponentially, and the manual method of organizing data and extracting key information can no longer meet the requirements of financial data management of universities. Taking the financial management of higher education institutions as an example, it is difficult to grasp the progress of financial budget execution with frequent and complicated daily expenditure and income problems, and then it is difficult to execute correct decisions in the management. The study uses information entropy as the decision basis of decision tree in the financial management of higher education institutions. The higher the value of information entropy generated in financial management, the higher the prediction accuracy of the decision tree. The metric calculation method is introduced to obtain the information entropy as well as the information gain rate to predict the likelihood of problematic events. The study validates the performance of the improved decision tree with a dataset that achieves a maximum accuracy of 95% in the experiment. With the higher prediction accuracy, for the university financial management system, a decision tree for financial warning is established and the link between the current month's financial expenditure and the warning mechanism is analyzed, and finally the two common decision tree algorithms, (Iterative Dichotomiser3,ID3) ID3 and (Classification and regression tree,CART) CART, are compared with the algorithm proposed in the study. The mean square error and the sum of squared error metrics are used to conclude that the algorithm proposed in the study has better performance. By improving the existing decision tree algorithm, the study proposes a decision tree model based on information entropy, which aims to help decision makers to quickly and accurately distill relevant data and make correct decisions in a large amount of information data for more rational financial management.

Keywords: Information entropy; financial management; decision tree; information gain rate; C4.5 algorithm; early warning structure

Huirong Zhao, “Research on the Application of Improved Decision Tree Algorithm based on Information Entropy in the Financial Management of Colleges and Universities” International Journal of Advanced Computer Science and Applications(IJACSA), 13(12), 2022. http://dx.doi.org/10.14569/IJACSA.2022.0131284

@article{Zhao2022,
title = {Research on the Application of Improved Decision Tree Algorithm based on Information Entropy in the Financial Management of Colleges and Universities},
journal = {International Journal of Advanced Computer Science and Applications},
doi = {10.14569/IJACSA.2022.0131284},
url = {http://dx.doi.org/10.14569/IJACSA.2022.0131284},
year = {2022},
publisher = {The Science and Information Organization},
volume = {13},
number = {12},
author = {Huirong Zhao}
}



Copyright Statement: This is an open access article licensed under a Creative Commons Attribution 4.0 International License, which permits unrestricted use, distribution, and reproduction in any medium, even commercially as long as the original work is properly cited.

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