Determination of fuzzy relations for economic fuzzy time series models by neural networks

Based on the works /11, 22, 27/ a fuzzy time series model is proposed and applied to predict chaotic financial process. Thwe general methodological framework of classical and fuzzy modelling of economic time series is considered. A complete fuzzy time series modellling approach is proposed which includes: determining and developing of fuzzy time series models, developing and calculating of fuzzy relations among the observations, calculating and interpreting the outputs. To generate fuzzy rules from data, the neural network with SCL-based product-space clustering is used

Forecasting seasonality in prices of potatoes and onions: challenge between geostatistical models, neuro fuzzy approach and Winter method

This paper, we studied the ability of geostatistical models (ordinary kriging (OK) and Inverse distance weighting (IDW)), adaptive neuro-fuzzy inference system (ANFIS) and Winter method for prediction of seasonality in prices of potatoes and onions in Iran over the seasonal period 1986_2001. Results show that the best estimators in order are winter method, ANFIS and geostatistical methods. The results indicate that Winter and ANFIS had powerful results for prediction the prices while geostatistical models were not useful in this respect.Price; Geostatistical model; Kiriging; Inverse distance weighting; Winter’s method; Adaptive neuro fuzzy inference system; Potatoes; Onions; Iran

Forecasting seasonality in prices of potatoes and onions: challenge between geostatistical models, neuro fuzzy approach and Winter method

Price, Geostatistical model, Kiriging, Inverse distance weighting, Winter’s method, Adaptive neuro fuzzy inference system, Potatoes, Onions, Iran, Crop Production/Industries, Demand and Price Analysis,

Intelligent systems in manufacturing: current developments and future prospects

Global competition and rapidly changing customer requirements are demanding increasing changes in manufacturing environments. Enterprises are required to constantly redesign their products and continuously reconfigure their manufacturing systems. Traditional approaches to manufacturing systems do not fully satisfy this new situation. Many authors have proposed that artificial intelligence will bring the flexibility and efficiency needed by manufacturing systems. This paper is a review of artificial intelligence techniques used in manufacturing systems. The paper first defines the components of a simplified intelligent manufacturing systems (IMS), the different Artificial Intelligence (AI) techniques to be considered and then shows how these AI techniques are used for the components of IMS

Modeling urban evolution by identifying spatiotemporal patterns and applying methods of artificial intelligence.Case study: Athens, Greece.

While during the past decades, urban areas experience constant slow population growth, the spatial patterns they form, by means of their limits and borders, are rapidly changing in a complex way. Furthermore, urban areas continue to expand to the expense of "rural” intensifying urban sprawl. The main aim of this paper is the definition of the evolution of urban areas and more specifically, the specification of an urban model, which deals simultaneously with the modification of population and building use patterns. Classical theories define city geographic border, with the Aristotelian division of 0 or 1 and are called fiat geographic boundaries. But the edge of a city and the urbanization "degree" is something not easily distinguishable. Actually, the line that city ends and rural starts is vague. In this respect a synthetic spatio - temporal methodology is described which, through the adaptation of different computational methods aims to assist planners and decision makers to gain an insight in urban - rural transition. Fuzzy Logic and Neural Networks are recruited to provide a precise image of spatial entities, further exploited in a twofold way. First for analysis and interpretation of up - to - date urban evolution and second, for the formulation of a robust spatial simulation model, the theoretical background of which is that the spatial contiguity between members of the same or different groups is one of the key factors in their evolution. The paper finally presents the results of the model application in the prefecture of Attica in Greece, unveiling the role of the Athens Metropolitan Area to its current and future evolution, by illustrating maps of urban growth dynamics.urban growth; urban dynamics; neural networks; fuzzy logic; Greece; Athens

Forecasting Long-Term Government Bond Yields: An Application of Statistical and AI Models

This paper evaluates several artificial intelligence and classical algorithms on their ability of forecasting the monthly yield of the US 10-year Treasury bonds from a set of four economic indicators. Due to the complexity of the prediction problem, the task represents a challenging test for the algorithms under evaluation. At the same time, the study is of particular significance for the important and paradigmatic role played by the US market in the world economy. Four data-driven artificial intelligence approaches are considered, namely, a manually built fuzzy logic model, a machine learned fuzzy logic model, a self-organising map model and a multi-layer perceptron model. Their performance is compared with the performance of two classical approaches, namely, a statistical ARIMA model and an econometric error correction model. The algorithms are evaluated on a complete series of end-month US 10-year Treasury bonds yields and economic indicators from 1986:1 to 2004:12. In terms of prediction accuracy and reliability of the modelling procedure, the best results are obtained by the three parametric regression algorithms, namely the econometric, the statistical and the multi-layer perceptron model. Due to the sparseness of the learning data samples, the manual and the automatic fuzzy logic approaches fail to follow with adequate precision the range of variations of the US 10-year Treasury bonds. For similar reasons, the self-organising map model gives an unsatisfactory performance. Analysis of the results indicates that the econometric model has a slight edge over the statistical and the multi-layer perceptron models. This suggests that pure data-driven induction may not fully capture the complicated mechanisms ruling the changes in interest rates. Overall, the prediction accuracy of the best models is only marginally better than the prediction accuracy of a basic one-step lag predictor. This result highlights the difficulty of the modelling task and, in general, the difficulty of building reliable predictors for financial markets.interest rates; forecasting; neural networks; fuzzy logic.

The Forecasting of Labour Force Participation and the Unemployment Rate in Poland and Turkey Using Fuzzy Time Series Methods

Fuzzy time series methods based on the fuzzy set theory proposed by Zadeh (1965) was first introduced by Song and Chissom (1993). Since fuzzy time series methods do not have the assumptions that traditional time series do and have effective forecasting performance, the interest on fuzzy time series approaches is increasing rapidly. Fuzzy time series methods have been used in almost all areas, such as environmental science, economy and finance. The concepts of labour force participation and unemployment have great importance in terms of both the economy and sociology of countries. For this reason there are many studies on their forecasting. In this study, we aim to forecast the labour force participation and unemployment rate in Poland and Turkey using different fuzzy time series methods

Neural Networks for Target Selection in Direct Marketing

Partly due to a growing interest in direct marketing, it has become an important application field for data mining. Many techniques have been applied to select the targets in commercial applications, such as statistical regression, regression trees, neural computing, fuzzy clustering and association rules. Modeling of charity donations has also recently been considered. The availability of a large number of techniques for analyzing the data may look overwhelming and ultimately unnecessary at first. However, the amount of data used in direct marketing is tremendous. Further, there are different types of data and likely strong nonlinear relations amongst different groups within the data. Therefore, it is unlikely that there will be a single method that can be used under all circumstances. For that reason, it is important to have access to a range of different target selection methods that can be used in a complementary fashion. In this respect, learning systems such as neural networks have the advantage that they can adapt to the nonlinearity in the data to capture the complex relations. This is an important motivation for applying neural networks for target selection. In this report, neural networks are applied to target selection in modeling of charity donations. Various stages of model building are described by using data from a large Dutch charity organization as a case. The results are compared with the results of more traditional methods for target selection such as logistic regression and CHAID.neural networks;data mining;direct mail;direct marketing;target selection

AI and OR in management of operations: history and trends

The last decade has seen a considerable growth in the use of Artificial Intelligence (AI) for operations management with the aim of finding solutions to problems that are increasing in complexity and scale. This paper begins by setting the context for the survey through a historical perspective of OR and AI. An extensive survey of applications of AI techniques for operations management, covering a total of over 1200 papers published from 1995 to 2004 is then presented. The survey utilizes Elsevier's ScienceDirect database as a source. Hence, the survey may not cover all the relevant journals but includes a sufficiently wide range of publications to make it representative of the research in the field. The papers are categorized into four areas of operations management: (a) design, (b) scheduling, (c) process planning and control and (d) quality, maintenance and fault diagnosis. Each of the four areas is categorized in terms of the AI techniques used: genetic algorithms, case-based reasoning, knowledge-based systems, fuzzy logic and hybrid techniques. The trends over the last decade are identified, discussed with respect to expected trends and directions for future work suggested

Simulation of urban system evolution in a synergetic modelling framework. The case of Attica, Greece

Spatial analysis and evolution simulation of such complex and dynamic systems as modern urban areas could greatly benefit from the synergy of methods and techniques that constitute the core of the fields of Information Technology and Artificial Intelligence. Additionally, if during the decision making process, a consistent methodology is applied and assisted by a user-friendly interface, premium and pragmatic solution strategies can be tested and evaluated. In such a framework, this paper presents both a prototype Decision Support System and a consorting spatio-temporal methodology, for modelling urban growth. Its main focus is on the analysis of current trends, the detection of the factors that mostly affect the evolution process and the examination of user-defined hypotheses regarding future states of the problem environment. According to the approach, a neural network model is formulated for a specific time intervals and each different group of spatial units, mainly based to the degree of their contiguity and spatial interaction. At this stage, fuzzy logic provides a precise image of spatial entities, further exploited in a twofold way. First, for the analysis and interpretation of up-to-date urban evolution and second, for the formulation of a robust spatial simulation model. It should be stressed, however, that the neural network model is not solely used to define future urban images, but also to evaluate the degree of influence that each variable as a significant of problem parameter, contributes to the final result. Thus, the formulation and the analysis of alternative planning scenarios are assisted. Both the proposed methodological framework and the prototype Decision Support System are utilized during the study of Attica, Greece?s principal prefecture and the definition of a twenty-year forecast. The variables considered and projected refer to population data derived from the 1961-1991 censuses and building uses aggregated in ten different categories. The final results are visualised through thematic maps in a GIS environment. Finally, the performance of the methodology is evaluated as well as directions for further improvements and enhancements are outlined. Keywords: Computational geography, Spatial modelling, Neural network models, Fuzzy logic.