A Compact Evolutionary Interval-Valued Fuzzy Rule-Based Classification System for the Modeling and Prediction of Real-World Financial Applications With Imbalanced Data

The current financial crisis has stressed the need to obtain more accurate prediction models in order to decrease risk when investing money on economic opportunities. In addition, the transparency of the process followed to make the decisions in financial applications is becoming an important issue. Furthermore, there is a need to handle real-world imbalanced financial datasets without using sampling techniques that might introduce noise in the used data. In this paper, we present a compact evolutionary interval-valued fuzzy rule-based classification system, which is based on interval-valued fuzzy rule-based classification system with tuning and rule selection (IVTURS FA RC-HD ) for the modeling and prediction of real-world financial applications. This proposed system allows obtaining good prediction accuracies using a small set of short fuzzy rules implying a high degree of interpretability of the generated linguistic model. Furthermore, the proposed system deals with the financial imbalanced datasets with no need for any preprocessing or sampling method and, thus, avoiding the accidental introduction of noise in the data used in the learning process. The system is also provided with a mechanism to handle examples that are not covered by any fuzzy rule in the generated rule base. To test the quality of our proposal, we will present an experimental study including 11 real-world financial datasets. We will show that the proposed system outperforms the original C4.5 decision tree, type-1, and interval-valued fuzzy counterparts that use the synthetic minority oversampling technique (SMOTE) to preprocess data and the original FURIA, which is a fuzzy approximative classifier. Furthermore, the proposed method enhances the results achieved by the cost-sensitive C4.5, and it gives competitive results when compared with FURIA using SMOTE, while our proposal avoids preprocessing techniques, and it provides interpretable models that allow obtaining more accurate results

A Compact Evolutionary Interval-Valued Fuzzy Rule-Based Classification System for the Modeling and Prediction of Real-World Financial Applications with Imbalanced Data

The current financial crisis has stressed the need of obtaining more accurate prediction models in order to decrease the risk when investing money on economic opportunities. In addition, the transparency of the process followed to make the decisions in financial applications is becoming an important issue. Furthermore, there is a need to handle the real-world imbalanced financial data sets without using sampling techniques which might introduce noise in the used data. In this paper, we present a compact evolutionary interval-valued fuzzy rule-based classification system, which is based on IVTURSFARC-HD (Interval-Valued fuzzy rulebased classification system with TUning and Rule Selection) [22]), for the modeling and prediction of real-world financial applications. This proposed system allows obtaining good predictions accuracies using a small set of short fuzzy rules implying a high degree of interpretability of the generated linguistic model. Furthermore, the proposed system deals with the financial imbalanced datasets with no need for any preprocessing or sampling method and thus avoiding the accidental introduction of noise in the data used in the learning process. The system is also provided with a mechanism to handle examples that are not covered by any fuzzy rule in the generated rule base. To test the quality of our proposal, we will present an experimental study including eleven realworld financial datasets. We will show that the proposed system outperforms the original C4.5 decision tree, type-1 and interval-valued fuzzy counterparts which use the SMOTE sampling technique to preprocess data and the original FURIA, which is a fuzzy approximative classifier. Furthermore, the proposed method enhances the results achieved by the cost sensitive C4.5 and it gives competitive results when compared with FURIA using SMOTE, while our proposal avoids pre-processing techniques and it provides interpretable models that allow obtaining more accurate results.Spanish Government TIN2011-28488 TIN2013-40765-

Learning positive-negative rule-based fuzzy associative classifiers with a good trade-off between complexity and accuracy

Nowadays, the call for transparency in Artificial Intelligence models is growing due to the need to understand how decisions derived from the methods are made when they ultimately affect human life and health. Fuzzy Rule-Based Classification Systems have been used successfully as they are models that are easily understood by models themselves. However, complex search spaces hinder the learning process, and in most cases, lead to problems of complexity (coverage and specificity). This problem directly affects the intention to use them to enable the user to analyze and understand the model. Because of this, we propose a fuzzy associative classification method to learn classifiers with an improved trade-off between accuracy and complexity. This method learns the most appropriate granularity of each variable to generate a set of simple fuzzy association rules with a reduced number of associations that consider positive and negative dependencies to be able to classify an instance depending on the presence or absence of certain items. The proposal also chooses the most interesting rules based on several interesting measures and finally performs a genetic rule selection and adjustment to reach the most suitable context of the selected rule set. The quality of our proposal has been analyzed using 23 real-world datasets, comparing them with other proposals by applying statistical analysis. Moreover, the study carried out on a real biomedical research problem of childhood obesity shows the improved trade-off between the accuracy and complexity of the models generated by our proposal.Funding for open access charge: Universidad de Granada / CBUA.ERDF and the Regional Government of Andalusia/Ministry of Economic Transformation, Industry, Knowledge and Universities (grant numbers P18-RT-2248 and B-CTS-536-UGR20)ERDF and Health Institute Carlos III/Spanish Ministry of Science, Innovation and Universities (grant number PI20/00711)Spanish Ministry of Science and Innovation (grant number PID2019-107793GB-I00

Evolutionary Learning of Fuzzy Rules for Regression

The objective of this PhD Thesis is to design Genetic Fuzzy Systems (GFS) that learn Fuzzy Rule Based Systems to solve regression problems in a general manner. Particularly, the aim is to obtain models with low complexity while maintaining high precision without using expert-knowledge about the problem to be solved. This means that the GFSs have to work with raw data, that is, without any preprocessing that help the learning process to solve a particular problem. This is of particular interest, when no knowledge about the input data is available or for a first approximation to the problem. Moreover, within this objective, GFSs have to cope with large scale problems, thus the algorithms have to scale with the data

Automatic synthesis of fuzzy systems: An evolutionary overview with a genetic programming perspective

Studies in Evolutionary Fuzzy Systems (EFSs) began in the 90s and have experienced a fast development since then, with applications to areas such as pattern recognition, curve‐fitting and regression, forecasting and control. An EFS results from the combination of a Fuzzy Inference System (FIS) with an Evolutionary Algorithm (EA). This relationship can be established for multiple purposes: fine‐tuning of FIS's parameters, selection of fuzzy rules, learning a rule base or membership functions from scratch, and so forth. Each facet of this relationship creates a strand in the literature, as membership function fine‐tuning, fuzzy rule‐based learning, and so forth and the purpose here is to outline some of what has been done in each aspect. Special focus is given to Genetic Programming‐based EFSs by providing a taxonomy of the main architectures available, as well as by pointing out the gaps that still prevail in the literature. The concluding remarks address some further topics of current research and trends, such as interpretability analysis, multiobjective optimization, and synthesis of a FIS through Evolving methods

Enhancing soft computing techniques to actively address imbalanced regression problems

This paper has been supported in part by the ERDF A way of making Europe/Health Institute Carlos III/Spanish Ministry of Science, Innovation and Universities (grant number PI20/00711), by the ERDF A way of making Europe/Regional Government of Andalusia/Ministry of Economic Transformation, Industry, Knowledge and Universities (grant numbers P18-RT-2248 and B-CTS-536-UGR20) and by the MCIN/AEI/10.13039/50110001103 (grant numbers PID2019-107793GB-I00 and PID2020-119478GB-I00). Funding for open access charge: Universidad de Granada / CBUA

Literature Review of the Recent Trends and Applications in various Fuzzy Rule based systems

Fuzzy rule based systems (FRBSs) is a rule-based system which uses linguistic fuzzy variables as antecedents and consequent to represent human understandable knowledge. They have been applied to various applications and areas throughout the soft computing literature. However, FRBSs suffers from many drawbacks such as uncertainty representation, high number of rules, interpretability loss, high computational time for learning etc. To overcome these issues with FRBSs, there exists many extensions of FRBSs. This paper presents an overview and literature review of recent trends on various types and prominent areas of fuzzy systems (FRBSs) namely genetic fuzzy system (GFS), hierarchical fuzzy system (HFS), neuro fuzzy system (NFS), evolving fuzzy system (eFS), FRBSs for big data, FRBSs for imbalanced data, interpretability in FRBSs and FRBSs which use cluster centroids as fuzzy rules. The review is for years 2010-2021. This paper also highlights important contributions, publication statistics and current trends in the field. The paper also addresses several open research areas which need further attention from the FRBSs research community.Comment: 49 pages, Accepted for publication in ijf

Enhancing multi-class classification in FARC-HD fuzzy classifier: on the synergy between n-dimensional overlap functions and decomposition strategies

There are many real-world classification problems involving multiple classes, e.g., in bioinformatics, computer vision or medicine. These problems are generally more difficult than their binary counterparts. In this scenario, decomposition strategies usually improve the performance of classifiers. Hence, in this paper we aim to improve the behaviour of FARC-HD fuzzy classifier in multi-class classification problems using decomposition strategies, and more specifically One-vs-One (OVO) and One-vs-All (OVA) strategies. However, when these strategies are applied on FARC-HD a problem emerges due to the low confidence values provided by the fuzzy reasoning method. This undesirable condition comes from the application of the product t-norm when computing the matching and association degrees, obtaining low values, which are also dependent on the number of antecedents of the fuzzy rules. As a result, robust aggregation strategies in OVO such as the weighted voting obtain poor results with this fuzzy classifier. In order to solve these problems, we propose to adapt the inference system of FARC-HD replacing the product t-norm with overlap functions. To do so, we define n-dimensional overlap functions. The usage of these new functions allows one to obtain more adequate outputs from the base classifiers for the subsequent aggregation in OVO and OVA schemes. Furthermore, we propose a new aggregation strategy for OVO to deal with the problem of the weighted voting derived from the inappropriate confidences provided by FARC-HD for this aggregation method. The quality of our new approach is analyzed using twenty datasets and the conclusions are supported by a proper statistical analysis. In order to check the usefulness of our proposal, we carry out a comparison against some of the state-of-the-art fuzzy classifiers. Experimental results show the competitiveness of our method.This work was supported in part by the Spanish Ministry of Science and Technology under projects TIN2011-28488, TIN-2012-33856 and TIN-2013- 40765-P and the Andalusian Research Plan P10-TIC-6858 and P11-TIC-7765