Machine Learning

This paper focuses on a new hybrid machine learning model for classifying eye states from EEG signals by integrating traditional techniques with deep learning methods. Our Hybrid LSTM-KNN architecture employs KNN for classification and uses LSTM networks to extract features temporally. In addition, we perform extensive feature engineering, including statistical Z-test and IQR filtering, dimensionality reduction using PCA, and multivariate analysis to further model the performance. Moreover, an SVM-based unsupervised clustering approach is proposed to partition the EEG feature space, followed by ensemble learning in each cluster to improve accuracy and robustness. Using the EEG Eye State Dataset for the first assessment, the Hybrid LSTM-KNN model recorded an accuracy of 87.2% without PCA. Further improvements through statistical filtering outperformed initial expectations, achieving a 6% rise in performance to 89.1% after outlier removal, 89.1% with Z-test (σ = 3), and 88.3% with IQR (1.5x). After applying PCA along with ensemble learning post clustering, the final model exceeded expectations with an accuracy and F1 score of 96.8%, surpassing Ensemble Cluster-KNN and traditional models based on Ensemble Cluster-KNN, Logistic Regression, SVM, and Random Forest. The outcome demonstrates the robustness and noise-resilience of the model’s performance in practical real-time brain-computer interface and cognitive monitoring systems.

This study presents a structured literature review on the application of AI in credit risk assessment, synthesizing empirical and conceptual research published between 2016 and 2022. It critically examines a range of AI models, including artificial neural networks (ANN), support vector machines (SVM), fuzzy logic systems, and hybrid architectures, with an emphasis on their predictive accuracy, robustness, and operational applicability. The review highlights that AI-based models consistently outperform traditional statistical techniques in handling nonlinear patterns, imbalanced datasets, and complex borrower profiles. Furthermore, AI enhances the inclusivity of credit evaluation by integrating alternative data sources and adapting to dynamic financial environments. However, the study also identifies ongoing challenges related to model interpretability, fairness, and regulatory compliance. By evaluating model performance metrics and methodological innovations across multiple contexts—including emerging markets, peer-to-peer platforms, and digital banking—the study offers a nuanced understanding of AI's strengths and limitations. The paper concludes with a call for balanced integration of explainable AI tools and ethical governance to ensure responsible deployment in financial institutions.