Abstract

The arrears problem puzzled most mobile communication corporations in China. In information theory, the Shannon entropy is a measure of the uncertainty in a signal or random event. Motivated by entropy theory especially the Shannon Entropy, in this study, one called customer information entropy is defined and proposed to credit evaluation for arrearage customers of cellular telephone. The proposed customer information entropy is based on customer’s behavior attributes. Arrearage customers often include malevolent ones and non-malevolent ones. 52364 arrearage customers among a total number of 400000 ones in a mobile communication corporation are chosen for experiment. The proposed measure yields good results in its application of credit evaluation for 52364 arrearage customers in August and September. Its correct evaluation rates for malevolent and non-malevolent of the 52364 arrearage ones both are over 90.0%: among the 52364 arrearage customers, 90.75% of the non-malevolent ones, whose entropy changes is less than zero, while for the entropy changes of the malevolent ones, 95.36% is equal to zero and 1.57% is more than zero. The experimental results indicate that the entropy changes of the non-malevolent ones could be considered as negative and nonnegative for the malevolent ones. The proposed show its potential practicality.

Keywords:

Arrearage, credit evaluation, customer information entropy, entropy, mobile communications,

References

Competing interests

The authors have no competing interests.

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Copyright

The authors have no competing interests.