Credit Risk Evaluation as a Service (CREaaS) based on ANN and Machine Learning

Credit risk evaluation is the major concern of the banks and financial institutions since there is a huge competition between them to find the minimum risk and maximum amount of credits supplied. Comparing with the other services of the banks like credit cards, value added financial services, account management and money transfers, the majority of their capitals has been used for various types of credits. Even there is a competition among them for finding and serving the low risk customers, these institution shares limited information about the risk and risk related information for the common usage. The purpose of this paper is to explain the service oriented architecture and the decision model for those banks which shares the information about their customers and makes potential customer analysis. Credit Risk Evaluation as a Service system, provides a novel service based information retrieval system submitted by the banks and institutions. The system itself has a sustainable, supervised learning with continuous improvement with the new data submitted. As a main concern of conflict of interest between the institutions trade and privacy information secured for internal usage and full encrypted data gathering and as well as storing architecture with encryption. Proposed system architecture and model is designed mainly for the commercial credits for SME’s due to the complexity and variety of other credits

Applying Absolute Residuals as Evaluation Criterion for Estimating the Development Time of Software Projects by Means of a Neuro-Fuzzy Approach

In the software development field, software practitioners expend between 30% and 40% more effort than is predicted. Accordingly, researchers have proposed new models for estimating the development effort such that the estimations of these models are close to actual ones. In this study, an application based on a new neuro-fuzzy system (NFS) is analyzed. The NFS accuracy was compared to that of a statistical multiple linear regression (MLR) model. The criterion for evaluating the accuracy of estimation models has mainly been the Magnitude of Relative Error (MRE), however, it was recently found that MRE is asymmetric, and the use of Absolute Residuals (AR) has been proposed, therefore, in this study, the accuracy results of the NFS and MLR were based on AR. After a statistical paired t-test was performed, results showed that accuracy of the New-NFS is statistically better than that of the MLR at the 99% confidence level. It can be concluded that a new-NFS could be used for predicting the effort of software development projects when they have been individually developed on a disciplined process.In the software development field, software practitioners expend between 30% and 40% more effort than is predicted. Accordingly, researchers have proposed new models for estimating the development effort such that the estimations of these models are close to actual ones. In this study, an application based on a new neuro-fuzzy system (NFS) is analyzed. The NFS accuracy was compared to that of a statistical multiple linear regression (MLR) model. The criterion for evaluating the accuracy of estimation models has mainly been the Magnitude of Relative Error (MRE), however, it was recently found that MRE is asymmetric, and the use of Absolute Residuals (AR) has been proposed, therefore, in this study, the accuracy results of the NFS and MLR were based on AR. After a statistical paired t-test was performed, results showed that accuracy of the New-NFS is statistically better than that of the MLR at the 99% confidence level. It can be concluded that a new-NFS could be used for predicting the effort of software development projects when they have been individually developed on a disciplined process

IEA ECES Annex 31 Final Report - Energy Storage with Energy Efficient Buildings and Districts: Optimization and Automation

At present, the energy requirements in buildings are majorly met from non-renewable sources where the contribution of renewable sources is still in its initial stage. Meeting the peak energy demand by non-renewable energy sources is highly expensive for the utility companies and it critically influences the environment through GHG emissions. In addition, renewable energy sources are inherently intermittent in nature. Therefore, to make both renewable and nonrenewable energy sources more efficient in building/district applications, they should be integrated with energy storage systems. Nevertheless, determination of the optimal operation and integration of energy storage with buildings/districts are not straightforward. The real strength of integrating energy storage technologies with buildings/districts is stalled by the high computational demand (or even lack of) tools and optimization techniques. Annex 31 aims to resolve this gap by critically addressing the challenges in integrating energy storage systems in buildings/districts from the perspective of design, development of simplified modeling tools and optimization techniques

Advances in Artificial Intelligence: Models, Optimization, and Machine Learning

The present book contains all the articles accepted and published in the Special Issue “Advances in Artificial Intelligence: Models, Optimization, and Machine Learning” of the MDPI Mathematics journal, which covers a wide range of topics connected to the theory and applications of artificial intelligence and its subfields. These topics include, among others, deep learning and classic machine learning algorithms, neural modelling, architectures and learning algorithms, biologically inspired optimization algorithms, algorithms for autonomous driving, probabilistic models and Bayesian reasoning, intelligent agents and multiagent systems. We hope that the scientific results presented in this book will serve as valuable sources of documentation and inspiration for anyone willing to pursue research in artificial intelligence, machine learning and their widespread applications

Real-time Control and Optimization of Water Supply and Distribution infrastructure

Across North America, water supply and distribution systems (WSDs) are controlled manually by operational staff - who place a heavy reliance on their experience and judgement when rendering operational decisions. These decisions range from scheduling the operation of pumps, valves and chemical dosing in the system. However, due to the uncertainty of demand, stringent water quality regulatory constraints, external forcing (cold/drought climates, fires, bursts) from the environment, and the non-stationarity of climate change, operators have the tendency to control their systems conservatively and reactively. WSDs that are operated in such fashion are said to be 'reactive' because: (i) the operators manually react to changes in the system behaviour, as measured by Supervisory Control and Data Acquisition (SCADA) systems; and (ii) are not always aware of any anomalies in the system until they are reported by consumers and authorities. The net result is that the overall operations of WSDs are suboptimal with respect to energy consumption, water losses, infrastructure damage and water quality. In this research, an intelligent platform, namely the Real-time Dynamically Dimensioned Scheduler (RT-DDS), is developed and quantitatively assessed for the proactive control and optimization of WSD operations. The RT-DDS platform was configured to solve a dynamic control problem at every timestep (hour) of the day. The control problem involved the minimization of energy costs (over the 24-hour period) by recommending 'near-optimal' pump schedules, while satisfying hydraulic reliability constraints. These constraints were predefined by operational staff and regulatory limits and define a tolerance band for pressure and storage levels across the WSD system. The RT-DDS platform includes three essential modules. The first module produces high-resolution forecasts of water demand via ensemble machine learning techniques. A water demand profile for the next 24-hours is predicted based on historical demand, ambient conditions (i.e. temperature, precipitation) and current calendar information. The predicted profile is then fed into the second module, which involves a simulation model of the WSD. The model is used to determine the hydraulic impacts of particular control settings. The results of the simulation model are used to guide the search strategy of the final module - a stochastic single solution optimization algorithm. The optimizer is parallelized for computational efficiency, such that the reporting frequency of the platform is within 15 minutes of execution time. The fidelity of the prediction engine of the RT-DDS platform was evaluated with an Advanced Metering Infrastructure (AMI) driven case study, whereby the short-term water consumption of the residential units in the city were predicted. A Multi-Layer Perceptron (MLP) model alongside ensemble-driven learning techniques (Random forests, Bagging trees and Boosted trees) were built, trained and validated as part of this research. A three-stage validation process was adopted to assess the replicative, predictive and structural validity of the models. Further, the models were assessed in their predictive capacity at two different spatial resolutions: at a single meter and at the city-level. While the models proved to have strong generalization capability, via good performance in the cross-validation testing, the models displayed slight biases when aiming to predict extreme peak events in the single meter dataset. It was concluded that the models performed far better with a lower spatial resolution (at the city or district level) whereby peak events are far more normalized. In general, the models demonstrated the capacity of using machine learning techniques in the context of short term water demand forecasting - particularly for real-time control and optimization. In determining the optimal representation of pump schedules for real-time optimization, multiple control variable formulations were assessed. These included binary control statuses and time-controlled triggers, whereby the pump schedule was represented as a sequence of on/off binary variables and active/idle discrete time periods, respectively. While the time controlled trigger representation systematically outperformed the binary representation in terms of computational efficiency, it was found that both formulations led to conditions whereby the system would violate the predefined maximum number of pump switches per calendar day. This occurred because at each timestep the control variable formulation was unaware of the previously elapsed pump switches in the subsequent hours. Violations in the maximum pump switch limits lead to transient instabilities and thus create hydraulically undesirable conditions. As such, a novel feedback architecture was proposed, such that at every timestep, the number of switches that had elapsed in the previous hours was explicitly encoded into the formulation. In this manner, the maximum number of switches per calendar day was never violated since the optimizer was aware of the current trajectory of the system. Using this novel formulation, daily energy cost savings of up to 25\% were achievable on an average day, leading to cost savings of over 2.3 million dollars over a ten-year period. Moreover, stable hydraulic conditions were produced in the system, thereby changing very little when compared to baseline operations in terms of quality of service and overall condition of assets