Towards a Comprehensible and Accurate Credit Management Model: Application of four Computational Intelligence Methodologies

The paper presents methods for classification of applicants into different categories of credit risk using four different computational intelligence techniques. The selected methodologies involved in the rule-based categorization task are (1) feedforward neural networks trained with second order methods (2) inductive machine learning, (3) hierarchical decision trees produced by grammar-guided genetic programming and (4) fuzzy rule based systems produced by grammar-guided genetic programming. The data used are both numerical and linguistic in nature and they represent a real-world problem, that of deciding whether a loan should be granted or not, in respect to financial details of customers applying for that loan, to a specific private EU bank. We examine the proposed classification models with a sample of enterprises that applied for a loan, each of which is described by financial decision variables (ratios), and classified to one of the four predetermined classes. Attention is given to the comprehensibility and the ease of use for the acquired decision models. Results show that the application of the proposed methods can make the classification task easier and - in some cases - may minimize significantly the amount of required credit data. We consider that these methodologies may also give the chance for the extraction of a comprehensible credit management model or even the incorporation of a related decision support system in bankin

A Hybrid of Ant Colony Optimization Algorithm and Simulated Annealing for Classification Rules

Ant colony optimization (ACO) is a metaheuristic approach inspired from the behaviour of natural ants and can be used to solve a variety of combinatorial optimization problems. Classification rule induction is one of the problems solved by the Ant-miner algorithm, a variant of ACO, which was initiated by Parpinelli in 2001. Previous studies have shown that ACO is a promising machine learning technique to generate classification rules. However, the Ant-miner is less class focused since the rule’s class is assigned after the rule was constructed. There is also the case where the Ant-miner cannot find any optimal solution for some data sets. Thus, this thesis proposed two variants of hybrid ACO with simulated annealing (SA) algorithm for solving problem of classification rule induction. In the first proposed algorithm, SA is used to optimize the rule's discovery activity by an ant. Benchmark data sets from various fields were used to test the proposed algorithms. Experimental results obtained from this proposed algorithm are comparable to the results of the Ant-miner and other well-known rule induction algorithms in terms of rule accuracy, but are better in terms of rule simplicity. The second proposed algorithm uses SA to optimize the terms selection while constructing a rule. The algorithm fixes the class before rule's construction. Since the algorithm fixed the class before each rule's construction, a much simpler heuristic and fitness function is proposed. Experimental results obtained from the proposed algorithm are much higher than other compared algorithms, in terms of predictive accuracy. The successful work on hybridization of ACO and SA algorithms has led to the improved learning ability of ACO for classification. Thus, a higher predictive power classification model for various fields could be generated

Fuzzy Rules from Ant-Inspired Computation

Centre for Intelligent Systems and their ApplicationsThis research identifies and investigates major issues in inducing accurate and comprehensible fuzzy rules from datasets.A review of the current literature on fuzzy rulebase induction uncovers two significant issues: A. There is a tradeoff between inducing accurate fuzzy rules and inducing comprehensible fuzzy rules; and, B. A common strategy for the induction of fuzzy rulebases, that of iterative rule learning where the rules are generated one by one and independently of each other, may not be an optimal one.FRANTIC, a system that provides a framework for exploring the claims above is developed. At the core lies a mechanism for creating individual fuzzy rules. This is based on a significantly modified social insect-inspired heuristic for combinatorial optimisation -- Ant Colony Optimisation. The rule discovery mechanism is utilised in two very different strategies for the induction of a complete fuzzy rulebase: 1. The first follows the common iterative rule learning approach for the induction of crisp and fuzzy rules; 2. The second has been designed during this research explicitly for the induction of a fuzzy rulebase, and generates all rules in parallel.Both strategies have been tested on a number of classification problems, including medical diagnosis and industrial plant fault detection, and compared against other crisp or fuzzy induction algorithms that use more well-established approaches. The results challenge statement A above, by presenting evidence to show that one criterion need not be met at the expense of the other. This research also uncovers the cost that is paid -- that of computational expenditure -- and makes concrete suggestions on how this may be resolved.With regards to statement B, until now little or no evidence has been put forward to support or disprove the claim. The results of this research indicate that definite advantages are offered by the second simultaneous strategy, that are not offered by the iterative one. These benefits include improved accuracy over a wide range of values for several key system parameters. However, both approaches also fare well when compared to other learning algorithms. This latter fact is due to the rule discovery mechanism itself -- the adapted Ant Colony Optimisation algorithm -- which affords several additional advantages. These include a simple mechanism within the rule construction process that enables it to cope with datasets that have an imbalanced distribution between the classes, and another for controlling the amount of fit to the training data.In addition, several system parameters have been designed to be semi-autonomous so as to avoid unnecessary user intervention, and in future work the social insect metaphor may be exploited and extended further to enable it to deal with industrial-strength data mining issues involving large volumes of data, and distributed and/or heterogeneous databases

Efficient image retrieval by fuzzy rules from boosting and metaheuristic

Fast content-based image retrieval is still a challenge for computer systems. We present a novel method aimed at classifying images by fuzzy rules and local image features. The fuzzy rule base is generated in the first stage by a boosting procedure. Boosting meta-learning is used to find the most representative local features. We briefly explore the utilization of metaheuristic algorithms for the various tasks of fuzzy systems optimization. We also provide a comprehensive description of the current best-performing DISH algorithm, which represents a powerful version of the differential evolution algorithm with effective embedded mechanisms for stronger exploration and preservation of the population diversity, designed for higher dimensional and complex optimization tasks. The algorithm is used to fine-tune the fuzzy rule base. The fuzzy rules can also be used to create a database index to retrieve images similar to the query image fast. The proposed approach is tested on a state-of-the-art image dataset and compared with the bag-of-features image representation model combined with the Support Vector Machine classification. The novel method gives a better classification accuracy, and the time of the training and testing process is significantly shorter. © 2020 Marcin Korytkowski et al., published by Sciendo.program of the Polish Minister of Science and Higher Education under the name "Regional Initiative of Excellence" in the years 2019-2022 [020/RID/2018/19

Fuzzy logic controller parameter optimization using metaheuristic Cuckoo search algorithm for a magnetic levitation system

The main benefits of fuzzy logic control (FLC) allow a qualitative knowledge of the desired system’s behavior to be included as IF-THEN linguistic rules for the control of dynamical systems where either an analytic model is not available or is too complex due, for instance, to the presence of nonlinear terms. The computational structure requires the definition of the FLC parameters namely, membership functions (MF) and a rule base (RB) defining the desired control policy. However, the optimization of the FLC parameters is generally carried out by means of a trial and error procedure or, more recently by using metaheuristic nature-inspired algorithms, for instance, particle swarm optimization, genetic algorithms, ant colony optimization, cuckoo search, etc. In this regard, the cuckoo search (CS) algorithm as one of the most promising and relatively recent developed nature-inspired algorithms, has been used to optimize FLC parameters in a limited variety of applications to determine the optimum FLC parameters of only the MF but not to the RB, as an extensive search in the literature has shown. In this paper, an optimization procedure based on the CS algorithm is presented to optimize all the parameters of the FLC, including the RB, and it is applied to a nonlinear magnetic levitation system. Comparative simulation results are provided to validate the features improvement of such an approach which can be extended to other FLC based control systems.Peer ReviewedPostprint (published version

Estimating CO2-Brine diffusivity using hybrid models of ANFIS and evolutionary algorithms

One of the important parameters illustrating the mass transfer process is the diffusion coefficient of carbon dioxide which has a great impact on carbon dioxide storage in marine ecosystems, saline aquifers, and depleted reservoirs. Due to the complex interpretation approaches and special laboratory equipment for measurement of carbon dioxide-brine system diffusivity, the computational and mathematical methods are preferred. In this paper, the adaptive neuro-fuzzy inference system (ANFIS) is coupled with five different evolutionary algorithms for predicting the diffusivity coefficient of carbon dioxide. The R2 values forthe testing phase are 0.9978, 0.9932, 0.9854, 0.9738 and 0.9514 for ANFIS optimized by particle swarm optimization (PSO), genetic algorithms (GA), ant colony optimization (ACO), backpropagation (BP), and differential evolution (DE), respectively. The hybrid machine learning model of ANFIS-PSO outperforms the other models