Modeling Financial Time Series with Artificial Neural Networks

Financial time series convey the decisions and actions of a population of human actors over time. Econometric and regressive models have been developed in the past decades for analyzing these time series. More recently, biologically inspired artificial neural network models have been shown to overcome some of the main challenges of traditional techniques by better exploiting the non-linear, non-stationary, and oscillatory nature of noisy, chaotic human interactions. This review paper explores the options, benefits, and weaknesses of the various forms of artificial neural networks as compared with regression techniques in the field of financial time series analysis.CELEST, a National Science Foundation Science of Learning Center (SBE-0354378); SyNAPSE program of the Defense Advanced Research Project Agency (HR001109-03-0001

Solar Storm Type Classification Using Probabilistic Neural Network compared with the Self-Organizing Map

One of the task of the LAPAN is making observation and forecasting of solar storms disturbance. This disturbances can affect the earths electromagnetic field that disrupt the electronic and navigational equipment on earth. LAPAN wanted a computer application that can automatically classify the type of solar storms, which became part of early warning systems to be created. The classification of the digital images of solar storm / sunspot is based on Modified - Zurich Sunspot Classification System. Classification method that we use here is the Probabilistic Neural Networks. The result of testing is promising because it has an accuracy of 94 for testing data. The accuracy is better than the accuracy of similar applications weve built with a combination of methods Self-Organizing Map and K-Nearest Neighbor

Bacteria classification using Cyranose 320 electronic nose

Background An electronic nose (e-nose), the Cyrano Sciences' Cyranose 320, comprising an array of thirty-two polymer carbon black composite sensors has been used to identify six species of bacteria responsible for eye infections when present at a range of concentrations in saline solutions. Readings were taken from the headspace of the samples by manually introducing the portable e-nose system into a sterile glass containing a fixed volume of bacteria in suspension. Gathered data were a very complex mixture of different chemical compounds. Method Linear Principal Component Analysis (PCA) method was able to classify four classes of bacteria out of six classes though in reality other two classes were not better evident from PCA analysis and we got 74% classification accuracy from PCA. An innovative data clustering approach was investigated for these bacteria data by combining the 3-dimensional scatter plot, Fuzzy C Means (FCM) and Self Organizing Map (SOM) network. Using these three data clustering algorithms simultaneously better 'classification' of six eye bacteria classes were represented. Then three supervised classifiers, namely Multi Layer Perceptron (MLP), Probabilistic Neural network (PNN) and Radial basis function network (RBF), were used to classify the six bacteria classes. Results A [6 × 1] SOM network gave 96% accuracy for bacteria classification which was best accuracy. A comparative evaluation of the classifiers was conducted for this application. The best results suggest that we are able to predict six classes of bacteria with up to 98% accuracy with the application of the RBF network. Conclusion This type of bacteria data analysis and feature extraction is very difficult. But we can conclude that this combined use of three nonlinear methods can solve the feature extraction problem with very complex data and enhance the performance of Cyranose 320

Applied Sensor Fault Detection, Identification and Data Reconstruction

Sensor fault detection and identification (SFD/I) has attracted considerable attention in military applications, especially when safety- or mission-critical issues are of paramount importance. Here, two readily implementable approaches for SFD/I are proposed through hierarchical clustering and self-organizing map neural networks. The proposed methodologies are capable of detecting sensor faults from a large group of sensors measuring different physical quantities and achieve SFD/I in a single stage. Furthermore, it is possible to reconstruct the measurements expected from the faulted sensor and thereby facilitate improved unit availability. The efficacy of the proposed approaches is demonstrated through the use of measurements from experimental trials on a gas turbine. Ultimately, the underlying principles are readily transferable to other complex industrial and military systems

Theoretical Interpretations and Applications of Radial Basis Function Networks

Medical applications usually used Radial Basis Function Networks just as Artificial Neural Networks. However, RBFNs are Knowledge-Based Networks that can be interpreted in several way: Artificial Neural Networks, Regularization Networks, Support Vector Machines, Wavelet Networks, Fuzzy Controllers, Kernel Estimators, Instanced-Based Learners. A survey of their interpretations and of their corresponding learning algorithms is provided as well as a brief survey on dynamic learning algorithms. RBFNs' interpretations can suggest applications that are particularly interesting in medical domains

Learning a world model and planning with a self-organizing, dynamic neural system

We present a connectionist architecture that can learn a model of the relations between perceptions and actions and use this model for behavior planning. State representations are learned with a growing self-organizing layer which is directly coupled to a perception and a motor layer. Knowledge about possible state transitions is encoded in the lateral connectivity. Motor signals modulate this lateral connectivity and a dynamic field on the layer organizes a planning process. All mechanisms are local and adaptation is based on Hebbian ideas. The model is continuous in the action, perception, and time domain.Comment: 9 pages, see http://www.marc-toussaint.net

Medical imaging analysis with artificial neural networks

Given that neural networks have been widely reported in the research community of medical imaging, we provide a focused literature survey on recent neural network developments in computer-aided diagnosis, medical image segmentation and edge detection towards visual content analysis, and medical image registration for its pre-processing and post-processing, with the aims of increasing awareness of how neural networks can be applied to these areas and to provide a foundation for further research and practical development. Representative techniques and algorithms are explained in detail to provide inspiring examples illustrating: (i) how a known neural network with fixed structure and training procedure could be applied to resolve a medical imaging problem; (ii) how medical images could be analysed, processed, and characterised by neural networks; and (iii) how neural networks could be expanded further to resolve problems relevant to medical imaging. In the concluding section, a highlight of comparisons among many neural network applications is included to provide a global view on computational intelligence with neural networks in medical imaging

Machine Learning in Wireless Sensor Networks: Algorithms, Strategies, and Applications

Wireless sensor networks monitor dynamic environments that change rapidly over time. This dynamic behavior is either caused by external factors or initiated by the system designers themselves. To adapt to such conditions, sensor networks often adopt machine learning techniques to eliminate the need for unnecessary redesign. Machine learning also inspires many practical solutions that maximize resource utilization and prolong the lifespan of the network. In this paper, we present an extensive literature review over the period 2002-2013 of machine learning methods that were used to address common issues in wireless sensor networks (WSNs). The advantages and disadvantages of each proposed algorithm are evaluated against the corresponding problem. We also provide a comparative guide to aid WSN designers in developing suitable machine learning solutions for their specific application challenges.Comment: Accepted for publication in IEEE Communications Surveys and Tutorial

Multi-learner based recursive supervised training

In this paper, we propose the Multi-Learner Based Recursive Supervised Training (MLRT) algorithm which uses the existing framework of recursive task decomposition, by training the entire dataset, picking out the best learnt patterns, and then repeating the process with the remaining patterns. Instead of having a single learner to classify all datasets during each recursion, an appropriate learner is chosen from a set of three learners, based on the subset of data being trained, thereby avoiding the time overhead associated with the genetic algorithm learner utilized in previous approaches. In this way MLRT seeks to identify the inherent characteristics of the dataset, and utilize it to train the data accurately and efficiently. We observed that empirically, MLRT performs considerably well as compared to RPHP and other systems on benchmark data with 11% improvement in accuracy on the SPAM dataset and comparable performances on the VOWEL and the TWO-SPIRAL problems. In addition, for most datasets, the time taken by MLRT is considerably lower than the other systems with comparable accuracy. Two heuristic versions, MLRT-2 and MLRT-3 are also introduced to improve the efficiency in the system, and to make it more scalable for future updates. The performance in these versions is similar to the original MLRT system