A bidirectional subsethood based similarity measure for fuzzy sets

Similarity measures are useful for reasoning about fuzzy sets. Hence, many classical set-theoretic similarity measures have been extended for comparing fuzzy sets. In previous work, a set-theoretic similarity measure considering the bidirectional subsethood for intervals was introduced. The measure addressed specific concerns of many common similarity measures, and it was shown to be bounded above and below by Jaccard and Dice measures respectively. Herein, we extend our prior measure from similarity on intervals to fuzzy sets. Specifically, we propose a vertical-slice extension where two fuzzy sets are compared based on their membership values.We show that the proposed extension maintains all common properties (i.e., reflexivity, symmetry, transitivity, and overlapping) of the original fuzzy similarity measure. We demonstrate and contrast its behaviour along with common fuzzy set-theoretic measures using different types of fuzzy sets (i.e., normal, non-normal, convex, and non-convex) in respect to different discretization levels

A Similarity Measure Based on Bidirectional Subsethood for Intervals

With a growing number of areas leveraging interval-valued data—including in the context of modelling human uncertainty (e.g., in Cyber Security), the capacity to accurately and systematically compare intervals for reasoning and computation is increasingly important. In practice, well established set-theoretic similarity measures such as the Jaccard and Sørensen-Dice measures are commonly used, while axiomatically a wide breadth of possible measures have been theoretically explored. This paper identifies, articulates, and addresses an inherent and so far not discussed limitation of popular measures—their tendency to be subject to aliasing—where they return the same similarity value for very different sets of intervals. The latter risks counter-intuitive results and poor automated reasoning in real-world applications dependent on systematically comparing interval-valued system variables or states. Given this, we introduce new axioms establishing desirable properties for robust similarity measures, followed by putting forward a novel set-theoretic similarity measure based on the concept of bidirectional subsethood which satisfies both the traditional and new axioms. The proposed measure is designed to be sensitive to the variation in the size of intervals, thus avoiding aliasing. The paper provides a detailed theoretical exploration of the new proposed measure, and systematically demonstrates its behaviour using an extensive set of synthetic and real-world data. Specifically, the measure is shown to return robust outputs that follow intuition—essential for real world applications. For example, we show that it is bounded above and below by the Jaccard and Sørensen-Dice similarity measures (when the minimum t-norm is used). Finally, we show that a dissimilarity or distance measure, which satisfies the properties of a metric, can easily be derived from the proposed similarity measure

Computational intelligence techniques in asset risk analysis

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University.The problem of asset risk analysis is positioned within the computational intelligence paradigm. We suggest an algorithm for reformulating asset pricing, which involves incorporating imprecise information into the pricing factors through fuzzy variables as well as a calibration procedure for their possibility distributions. Then fuzzy mathematics is used to process the imprecise factors and obtain an asset evaluation. This evaluation is further automated using neural networks with sign restrictions on their weights. While such type of networks has been only used for up to two network inputs and hypothetical data, here we apply thirty-six inputs and empirical data. To achieve successful training, we modify the Levenberg-Marquart backpropagation algorithm. The intermediate result achieved is that the fuzzy asset evaluation inherits features of the factor imprecision and provides the basis for risk analysis. Next, we formulate a risk measure and a risk robustness measure based on the fuzzy asset evaluation under different characteristics of the pricing factors as well as different calibrations. Our database, extracted from DataStream, includes thirty-five companies traded on the London Stock Exchange. For each company, the risk and robustness measures are evaluated and an asset risk analysis is carried out through these values, indicating the implications they have on company performance. A comparative company risk analysis is also provided. Then, we employ both risk measures to formulate a two-step asset ranking method. The assets are initially rated according to the investors' risk preference. In addition, an algorithm is suggested to incorporate the asset robustness information and refine further the ranking benefiting market analysts. The rationale provided by the ranking technique serves as a point of departure in designing an asset risk classifier. We identify the fuzzy neural network structure of the classifier and develop an evolutionary training algorithm. The algorithm starts with suggesting preliminary heuristics in constructing a sufficient training set of assets with various characteristics revealed by the values of the pricing factors and the asset risk values. Then, the training algorithm works at two levels, the inner level targets weight optimization, while the outer level efficiently guides the exploration of the search space. The latter is achieved by automatically decomposing the training set into subsets of decreasing complexity and then incrementing backward the corresponding subpopulations of partially trained networks. The empirical results prove that the developed algorithm is capable of training the identified fuzzy network structure. This is a problem of such complexity that prevents single-level evolution from attaining meaningful results. The final outcome is an automatic asset classifier, based on the investors’ perceptions of acceptable risk. All the steps described above constitute our approach to reformulating asset risk analysis within the approximate reasoning framework through the fusion of various computational intelligence techniques

Fuzzy Lattice Reasoning for Pattern Classification Using a New Positive Valuation Function

This paper describes an enhancement of fuzzy lattice reasoning (FLR) classifier for pattern classification based on a positive valuation function. Fuzzy lattice reasoning (FLR) was described lately as a lattice data domain extension of fuzzy ARTMAP neural classifier based on a lattice inclusion measure function. In this work, we improve the performance of FLR classifier by defining a new nonlinear positive valuation function. As a consequence, the modified algorithm achieves better classification results. The effectiveness of the modified FLR is demonstrated by examples on several well-known pattern recognition benchmarks

ISIPTA'07: Proceedings of the Fifth International Symposium on Imprecise Probability: Theories and Applications

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