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-

A Historical Account of Types of Fuzzy Sets and Their Relationships

In this paper, we review the definition and basic properties of the different types of fuzzy sets that have appeared up to now in the literature. We also analyze the relationships between them and enumerate some of the applications in which they have been used

IVTURS: A linguistic fuzzy rule-based classification system based on a new interval-valued fuzzy reasoning method with tuning and rule selection

Interval-valued fuzzy sets have been shown to be a useful tool for dealing with the ignorance related to the definition of the linguistic labels. Specifically, they have been successfully applied to solve classification problems, performing simple modifications on the fuzzy reasoning method to work with this representation and making the classification based on a single number. In this paper we present IVTURS, a new linguistic fuzzy rule-based classification method based on a new completely interval-valued fuzzy reasoning method. This inference process uses interval-valued restricted equivalence functions to increase the relevance of the rules in which the equivalence of the interval membership degrees of the patterns and the ideal membership degrees is greater, which is a desirable behaviour. Furthermore, their parametrized construction allows the computation of the optimal function for each variable to be performed, which could involve a potential improvement in the system’s behaviour. Additionally, we combine this tuning of the equivalence with rule selection in order to decrease the complexity of the system. In this paper we name our method IVTURS-FARC, since we use the FARC-HD method to accomplish the fuzzy rule learning process. The experimental study is developed in three steps in order to ascertain the quality of our new proposal. First, we determine both the essential role that interval-valued fuzzy sets play in the method and the need for the rule selection process. Next, we show the improvements achieved by IVTURS-FARC with respect to the tuning of the degree of ignorance when it is applied in both an isolated way and when combined with the tuning of the equivalence. Finally, the significance of IVTURS-FARC is further depicted by means of a comparison by which it is proved to outperform the results of FARC-HD and FURIA, which are two high performing fuzzy classification algorithms.This work was supported in part by the Spanish Ministry of Science and Technology under projects TIN2011-28488 and TIN2010-15055 and the Andalusian Research Plan P10-TIC-6858 and P11-TIC-7765

Toward enhancement of deep learning techniques using fuzzy logic: a survey

Deep learning has emerged recently as a type of artificial intelligence (AI) and machine learning (ML), it usually imitates the human way in gaining a particular knowledge type. Deep learning is considered an essential data science element, which comprises predictive modeling and statistics. Deep learning makes the processes of collecting, interpreting, and analyzing big data easier and faster. Deep neural networks are kind of ML models, where the non-linear processing units are layered for the purpose of extracting particular features from the inputs. Actually, the training process of similar networks is very expensive and it also depends on the used optimization method, hence optimal results may not be provided. The techniques of deep learning are also vulnerable to data noise. For these reasons, fuzzy systems are used to improve the performance of deep learning algorithms, especially in combination with neural networks. Fuzzy systems are used to improve the representation accuracy of deep learning models. This survey paper reviews some of the deep learning based fuzzy logic models and techniques that were presented and proposed in the previous studies, where fuzzy logic is used to improve deep learning performance. The approaches are divided into two categories based on how both of the samples are combined. Furthermore, the models' practicality in the actual world is revealed

Fuzzy decision-making fuser (FDMF) for integrating human-machine autonomous (HMA) systems with adaptive evidence sources

© 2017 Liu, Pal, Marathe, Wang and Lin. A brain-computer interface (BCI) creates a direct communication pathway between the human brain and an external device or system. In contrast to patient-oriented BCIs, which are intended to restore inoperative or malfunctioning aspects of the nervous system, a growing number of BCI studies focus on designing auxiliary systems that are intended for everyday use. The goal of building these BCIs is to provide capabilities that augment existing intact physical and mental capabilities. However, a key challenge to BCI research is human variability; factors such as fatigue, inattention, and stress vary both across different individuals and for the same individual over time. If these issues are addressed, autonomous systems may provide additional benefits that enhance system performance and prevent problems introduced by individual human variability. This study proposes a human-machine autonomous (HMA) system that simultaneously aggregates human and machine knowledge to recognize targets in a rapid serial visual presentation (RSVP) task. The HMA focuses on integrating an RSVP BCI with computer vision techniques in an image-labeling domain. A fuzzy decision-making fuser (FDMF) is then applied in the HMA system to provide a natural adaptive framework for evidence-based inference by incorporating an integrated summary of the available evidence (i.e., human and machine decisions) and associated uncertainty. Consequently, the HMA system dynamically aggregates decisions involving uncertainties from both human and autonomous agents. The collaborative decisions made by an HMA system can achieve and maintain superior performance more efficiently than either the human or autonomous agents can achieve independently. The experimental results shown in this study suggest that the proposed HMA system with the FDMF can effectively fuse decisions from human brain activities and the computer vision techniques to improve overall performance on the RSVP recognition task. This conclusion demonstrates the potential benefits of integrating autonomous systems with BCI systems