Fuzzy Least Squares Twin Support Vector Machines

Least Squares Twin Support Vector Machine (LST-SVM) has been shown to be an efficient and fast algorithm for binary classification. It combines the operating principles of Least Squares SVM (LS-SVM) and Twin SVM (T-SVM); it constructs two non-parallel hyperplanes (as in T-SVM) by solving two systems of linear equations (as in LS-SVM). Despite its efficiency, LST-SVM is still unable to cope with two features of real-world problems. First, in many real-world applications, labels of samples are not deterministic; they come naturally with their associated membership degrees. Second, samples in real-world applications may not be equally important and their importance degrees affect the classification. In this paper, we propose Fuzzy LST-SVM (FLST-SVM) to deal with these two characteristics of real-world data. Two models are introduced for FLST-SVM: the first model builds up crisp hyperplanes using training samples and their corresponding membership degrees. The second model, on the other hand, constructs fuzzy hyperplanes using training samples and their membership degrees. Numerical evaluation of the proposed method with synthetic and real datasets demonstrate significant improvement in the classification accuracy of FLST-SVM when compared to well-known existing versions of SVM

One-Class Classification: Taxonomy of Study and Review of Techniques

One-class classification (OCC) algorithms aim to build classification models when the negative class is either absent, poorly sampled or not well defined. This unique situation constrains the learning of efficient classifiers by defining class boundary just with the knowledge of positive class. The OCC problem has been considered and applied under many research themes, such as outlier/novelty detection and concept learning. In this paper we present a unified view of the general problem of OCC by presenting a taxonomy of study for OCC problems, which is based on the availability of training data, algorithms used and the application domains applied. We further delve into each of the categories of the proposed taxonomy and present a comprehensive literature review of the OCC algorithms, techniques and methodologies with a focus on their significance, limitations and applications. We conclude our paper by discussing some open research problems in the field of OCC and present our vision for future research.Comment: 24 pages + 11 pages of references, 8 figure

Forecasting of financial data: a novel fuzzy logic neural network based on error-correction concept and statistics

First, this paper investigates the effect of good and bad news on volatility in the BUX return time series using asymmetric ARCH models. Then, the accuracy of forecasting models based on statistical (stochastic), machine learning methods, and soft/granular RBF network is investigated. To forecast the high-frequency financial data, we apply statistical ARMA and asymmetric GARCH-class models. A novel RBF network architecture is proposed based on incorporation of an error-correction mechanism, which improves forecasting ability of feed-forward neural networks. These proposed modelling approaches and SVM models are applied to predict the high-frequency time series of the BUX stock index. We found that it is possible to enhance forecast accuracy and achieve significant risk reduction in managerial decision making by applying intelligent forecasting models based on latest information technologies. On the other hand, we showed that statistical GARCH-class models can identify the presence of leverage effects, and react to the good and bad news.Web of Science421049