Portfolio Selection Based on Distance between Fuzzy Variables

This paper researches portfolio selection problem in fuzzy environment. We introduce a new simple method in which the distance between fuzzy variables is used to measure the divergence of fuzzy investment return from a prior one. Firstly, two new mathematical models are proposed by expressing divergence as distance, investment return as expected value, and risk as variance and semivariance, respectively. Secondly, the crisp forms of the new models are also provided for different types of fuzzy variables. Finally, several numerical examples are given to illustrate the effectiveness of the proposed approach

Different distance measures for fuzzy linear regression with Monte Carlo methods

The aim of this study was to determine the best distance measure for estimating the fuzzy linear regression model parameters with Monte Carlo (MC) methods. It is pointed out that only one distance measure is used for fuzzy linear regression with MC methods within the literature. Therefore, three different definitions of distance measure between two fuzzy numbers are introduced. Estimation accuracies of existing and proposed distance measures are explored with the simulation study. Distance measures are compared to each other in terms of estimation accuracy; hence this study demonstrates that the best distance measures to estimate fuzzy linear regression model parameters with MC methods are the distance measures defined by Kaufmann and Gupta (Introduction to fuzzy arithmetic theory and applications. Van Nostrand Reinhold, New York, 1991), Heilpern-2 (Fuzzy Sets Syst 91(2):259–268, 1997) and Chen and Hsieh (Aust J Intell Inf Process Syst 6(4):217–229, 2000). One the other hand, the worst distance measure is the distance measure used by Abdalla and Buckley (Soft Comput 11:991–996, 2007; Soft Comput 12:463–468, 2008). These results would be useful to enrich the studies that have already focused on fuzzy linear regression models

(Quantum) Space-Time as a Statistical Geometry of Fuzzy Lumps and the Connection with Random Metric Spaces

We develop a kind of pregeometry consisting of a web of overlapping fuzzy lumps which interact with each other. The individual lumps are understood as certain closely entangled subgraphs (cliques) in a dynamically evolving network which, in a certain approximation, can be visualized as a time-dependent random graph. This strand of ideas is merged with another one, deriving from ideas, developed some time ago by Menger et al, that is, the concept of probabilistic- or random metric spaces, representing a natural extension of the metrical continuum into a more microscopic regime. It is our general goal to find a better adapted geometric environment for the description of microphysics. In this sense one may it also view as a dynamical randomisation of the causal-set framework developed by e.g. Sorkin et al. In doing this we incorporate, as a perhaps new aspect, various concepts from fuzzy set theory.Comment: 25 pages, Latex, no figures, some references added, some minor changes added relating to previous wor