Applied Rough Set Logics for Multi-Criteria Decision Analysis in Stock Index Volatility Projection

2011 ◽  
Vol 14 (04) ◽  
pp. 715-735
Author(s):  
Wen-Rong Jerry Ho

The main purpose of this paper is to advocate a rule-based forecasting technique for anticipating stock index volatility. This paper intends to set up a stock index indicators projection prototype by using a multiple criteria decision making model consisting of the cluster analysis (CA) technique and Rough Set Theory (RST) to select the important attributes and forecast TSEC Capitalization Weighted Stock Index. The projection prototype was then released to forecast the stock index in the first half of 2009 with an accuracy of 66.67%. The results point out that the decision rules were authenticated to employ in forecasting the stock index volatility appropriately.

2020 ◽  
Vol 0 (0) ◽  
pp. 1-34
Author(s):  
Kuang-Hua Hu ◽  
Fu-Hsiang Chen ◽  
Ming-Fu Hsu ◽  
Gwo-Hshiung Tzeng

In today’s big-data era, enterprises are able to generate complex and non-structured information that could cause considerable challenges for CPA firms in data analysis and to issue improper audited reports within the required period. Artificial intelligence (AI)-enabled auditing technology not only facilitates accurate and comprehensive auditing for CPA firms, but is also a major breakthrough in auditing’s new environment. Applications of an AI-enabled auditing technique in external auditing can add to auditing efficiency, increase financial reporting accountability, ensure audit quality, and assist decision-makers in making reliable decisions. Strategies related to the adoption of an AI-enabled auditing technique by CPA firms cover the classical multiple criteria decision-making (MCDM) task (i.e., several perspectives/criteria must be considered). To address this critical task, the present study proposes a fusion multiple rule-based decision making (MRDM) model that integrates rule-based technique (i.e., the fuzzy rough set theory (FRST) with ant colony optimization (ACO)) into MCDM techniques that can assist decision makers in selecting the best methods necessary to achieve the aspired goals of audit success. We also consider potential implications for articulating suitable strategies that can improve the adoption of AI-enabled auditing techniques and that target continuous improvement and sustainable development.


2014 ◽  
Vol 989-994 ◽  
pp. 1536-1540
Author(s):  
Gui Juan Song ◽  
Xin Cao ◽  
Xin Yue Wang

The main idea of rough set theory is to extract decision rules by attribute reduction and value reduction in the premises of keeping the ability of classification. This paper presents the design of model for customer division based on rough set, and uses algorithms for attribute reduction and rule extraction in rough set to analyze the customer of supermarket. This paper also introduces how to achieve the minimum result of attribute reduction and decision-making via decision-making report, winkling redundant attribute and over-rule of decision.


2019 ◽  
Vol 20 (1) ◽  
pp. 61-77
Author(s):  
Li Zhang ◽  
Xulu Xue

Abstract “Rough set” is a theory put forward by the polish scholar Z. Pawlak, which is a useful mathematics tool for dealing with vague and uncertain information. Rough set theory can achieve a subset of all attribute which preserves the discernible ability of original features, by using the data only with no additional information. As a typical system of multi-agent, the decision-making system of soccer robot has the features of multi-layered, antagonism, and cooperation. On the bases of rough set theory, this paper established a decision making system with complete information for soccer robot, and then reduce the condition and decision attributes and their values, to get the simply decision rules. On the otherwise, considering the situation of information loss, we study decision making of imperfect information system, extract the decision rules and calculate the reliability, so that the rules can assist the agent to make right decision in competition. The simulation result shows that the algorithm is correct and effective.


2021 ◽  
Author(s):  
Liting Jing ◽  
Junfeng Ma

Abstract With the advancement of new technologies and diverse customer-centered design requirements, the medical device design decision making becomes challenge. Incorporating multiple stakeholders’ requirements into the medical device design will significantly affect the market competitiveness and performance. The classic design decision making approaches mainly focused on design criteria priority determination and conceptual schemes evaluation, which lack the capacity of reflecting the interdependence of interest among stakeholders and capturing the ambiguous influence on the overall design expectations, leading to the unreliable decision making results. In order to relax these constraints in the medical device design, this paper incorporates rough set theory with cooperative game theory model to develop a novel user-centered design decision making framework. The proposed approach is composed of three components: 1) end/professional user needs identification and classification, 2) evaluation criteria correlation diagram and scheme value matrix establishment using rough set theory; and 3) fuzzy coalition utility model development to obtain optimal desirability considering users’ conflict interests. We used a blood pressure meter case study to demonstrate and validate the proposed approach. Compared with the traditional Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) approach, the proposed approach is more robust.


Kybernetes ◽  
2016 ◽  
Vol 45 (3) ◽  
pp. 461-473 ◽  
Author(s):  
Sun Bingzhen ◽  
Ma Weimin

Purpose – The purpose of this paper is to present a new method for evaluation of emergency plans for unconventional emergency events by using the soft fuzzy rough set theory and methodology. Design/methodology/approach – In response to the problems of insufficient risk identification, incomplete and inaccurate data and different preference of decision makers, a new model for emergency plan evaluation is established by combining soft set theory with classical fuzzy rough set theory. Moreover, by combining the TOPSIS method with soft fuzzy rough set theory, the score value of the soft fuzzy lower and upper approximation is defined for the optimal object and the worst object. Finally, emergency plans are comprehensively evaluated according to the soft close degree of the soft fuzzy rough set theory. Findings – This paper presents a new perspective on emergency management decision making in unconventional emergency events. Also, the paper provides an effective model for evaluating emergency plans for unconventional events. Originality/value – The paper contributes to decision making in emergency management of unconventional emergency events. The model is useful for dealing with decision making with uncertain information.


2013 ◽  
pp. 1225-1251
Author(s):  
Chun-Che Huang ◽  
Tzu-Liang (Bill) Tseng ◽  
Hao-Syuan Lin

Patent infringement risk is a significant issue for corporations due to the increased appreciation of intellectual property rights. If a corporation gives insufficient protection to its patents, it may loss both profits from product, and industry competitiveness. Many studies on patent infringement have focused on measuring the patent trend indicators and the patent monetary value. However, very few studies have attempted to develop a categorization mechanism for measuring and evaluating the patent infringement risk, for example, the categorization of the patent infringement cases, then to determine the significant attributes and introduce the infringement decision rules. This study applies Rough Set Theory (RST), which is suitable for processing qualitative information to induce rules to derive significant attributes for categorization of the patent infringement risk. Moreover, through the use of the concept hierarchy and the credibility index, it can be integrated with RST and then enhance application of the finalized decision rules.


Author(s):  
Benjamin Griffiths

Rough Set Theory (RST), since its introduction in Pawlak (1982), continues to develop as an effective tool in data mining. Within a set theoretical structure, its remit is closely concerned with the classification of objects to decision attribute values, based on their description by a number of condition attributes. With regards to RST, this classification is through the construction of ‘if .. then ..’ decision rules. The development of RST has been in many directions, amongst the earliest was with the allowance for miss-classification in the constructed decision rules, namely the Variable Precision Rough Sets model (VPRS) (Ziarko, 1993), the recent references for this include; Beynon (2001), Mi et al. (2004), and Slezak and Ziarko (2005). Further developments of RST have included; its operation within a fuzzy environment (Greco et al., 2006), and using a dominance relation based approach (Greco et al., 2004). The regular major international conferences of ‘International Conference on Rough Sets and Current Trends in Computing’ (RSCTC, 2004) and ‘International Conference on Rough Sets, Fuzzy Sets, Data Mining and Granular Computing’ (RSFDGrC, 2005) continue to include RST research covering the varying directions of its development. This is true also for the associated book series entitled ‘Transactions on Rough Sets’ (Peters and Skowron, 2005), which further includes doctoral theses on this subject. What is true, is that RST is still evolving, with the eclectic attitude to its development meaning that the definitive concomitant RST data mining techniques are still to be realised. Grzymala-Busse and Ziarko (2000), in a defence of RST, discussed a number of points relevant to data mining, and also made comparisons between RST and other techniques. Within the area of data mining and the desire to identify relationships between condition attributes, the effectiveness of RST is particularly pertinent due to the inherent intent within RST type methodologies for data reduction and feature selection (Jensen and Shen, 2005). That is, subsets of condition attributes identified that perform the same role as all the condition attributes in a considered data set (termed ß-reducts in VPRS, see later). Chen (2001) addresses this, when discussing the original RST, they state it follows a reductionist approach and is lenient to inconsistent data (contradicting condition attributes - one aspect of underlying uncertainty). This encyclopaedia article describes and demonstrates the practical application of a RST type methodology in data mining, namely VPRS, using nascent software initially described in Griffiths and Beynon (2005). The use of VPRS, through its relative simplistic structure, outlines many of the rudiments of RST based methodologies. The software utilised is oriented towards ‘hands on’ data mining, with graphs presented that clearly elucidate ‘veins’ of possible information identified from ß-reducts, over different allowed levels of missclassification associated with the constructed decision rules (Beynon and Griffiths, 2004). Further findings are briefly reported when undertaking VPRS in a resampling environment, with leave-one-out and bootstrapping approaches adopted (Wisnowski et al., 2003). The importance of these results is in the identification of the more influential condition attributes, pertinent to accruing the most effective data mining results.


Author(s):  
Yasuo Kudo ◽  
Tetsuya Murai

This paper focuses on rough set theory which provides mathematical foundations of set-theoretical approximation for concepts, as well as reasoning about data. Also presented in this paper is the concept of relative reducts which is one of the most important notions for rule generation based on rough set theory. In this paper, from the viewpoint of approximation, the authors introduce an evaluation criterion for relative reducts using roughness of partitions that are constructed from relative reducts. The proposed criterion evaluates each relative reduct by the average of coverage of decision rules based on the relative reduct, which also corresponds to evaluate the roughness of partition constructed from the relative reduct,


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