Comparative Analysis of Neural Network and Fuzzy Logic Techniques in Credit Risk Evaluation

2016 ◽  
Vol 12 (1) ◽  
pp. 47-62 ◽  
Author(s):  
Asogbon Mojisola Grace ◽  
Samuel Oluwarotimi Williams
Keyword(s):  
Neural Network ◽  
Fuzzy Logic ◽  
Comparative Analysis ◽  
Credit Risk ◽  
Risk Evaluation ◽  
Fuzzy Inference ◽  
Learning Algorithm ◽  
Risk Level ◽  
Inference System ◽  
Wrong Decision

Credit risk evaluation techniques that aid effective decisions in credit lending are of great importance to the financial and banking industries. Such techniques assist credit managers to minimize the risks often associated with wrong decision making. Several techniques have been developed in the time past for credit risk evaluation and these techniques suffer from one form of limitation or the other. Recently, powerful soft computing tools have been proposed for problem solving among which are the neural networks and fuzzy logic. In this study, a neural network based on backpropagation learning algorithm and a fuzzy inference system based on Mamdani model were developed to evaluate the risk level of credit applicants. A comparative analysis of the performances of both systems was carried out and experimental results show that neural network with an overall prediction accuracy of 96.89% performed better than the fuzzy logic method with 94.44%. Finding from this study could provide useful information on how to improve the performance of existing credit risk evaluation systems.

Comparative Analysis of Neural Network and Fuzzy Logic Techniques in Credit Risk Evaluation

2016 ◽  
pp. 1289-1305
Author(s):  
Asogbon Mojisola Grace ◽  
Samuel Oluwarotimi Williams
Keyword(s):  
Neural Network ◽  
Fuzzy Logic ◽  
Comparative Analysis ◽  
Credit Risk ◽  
Risk Evaluation ◽  
Fuzzy Inference ◽  
Learning Algorithm ◽  
Risk Level ◽  
Fuzzy Logic Method ◽  
The Neural Networks

Credit risk evaluation techniques that aid effective decisions in credit lending are of great importance to the financial and banking industries. Such techniques assist credit managers to minimize the risks often associated with wrong decision making. Several techniques have been developed in the time past for credit risk evaluation and these techniques suffer from one form of limitation or the other. Recently, powerful soft computing tools have been proposed for problem solving among which are the neural networks and fuzzy logic. In this study, a neural network based on backpropagation learning algorithm and a fuzzy inference system based on Mamdani model were developed to evaluate the risk level of credit applicants. A comparative analysis of the performances of both systems was carried out and experimental results show that neural network with an overall prediction accuracy of 96.89% performed better than the fuzzy logic method with 94.44%. Finding from this study could provide useful information on how to improve the performance of existing credit risk evaluation systems.

A NEURAL NETWORK MODEL FOR CREDIT RISK EVALUATION

2009 ◽  
Vol 19 (04) ◽  
pp. 285-294 ◽  
Author(s):  
ADNAN KHASHMAN
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Credit Risk ◽  
Network Model ◽  
Neural Network Model ◽  
Risk Evaluation ◽  
Evaluation System ◽  
Learning Algorithm ◽  
Back Propagation ◽  
Learning Schemes

Credit scoring is one of the key analytical techniques in credit risk evaluation which has been an active research area in financial risk management. This paper presents a credit risk evaluation system that uses a neural network model based on the back propagation learning algorithm. We train and implement the neural network to decide whether to approve or reject a credit application, using seven learning schemes and real world credit applications from the Australian credit approval datasets. A comparison of the system performance under the different learning schemes is provided, furthermore, we compare the performance of two neural networks; with one and two hidden layers following the ideal learning scheme. Experimental results suggest that neural networks can be effectively used in automatic processing of credit applications.

scholarly journals Prediction of Pullout Behavior of Belled Piles through Various Machine Learning Modelling Techniques

Sensors ◽  
2019 ◽  
Vol 19 (17) ◽  
pp. 3678 ◽  
Author(s):  
Dieu Tien Bui ◽  
Hossein Moayedi ◽  
Mu’azu Mohammed Abdullahi ◽  
Ahmad Safuan A Rashid ◽  
Hoang Nguyen
Keyword(s):  
Neural Network ◽  
Fuzzy Inference ◽  
Learning Algorithm ◽  
Back Propagation ◽  
Least Square ◽  
General Regression Neural Network ◽  
Training Dataset ◽  
Coefficient Of Determination ◽  
Inference System ◽  
Testing Dataset

The main goal of this study is to estimate the pullout forces by developing various modelling technique like feedforward neural network (FFNN), radial basis functions neural networks (RBNN), general regression neural network (GRNN) and adaptive neuro-fuzzy inference system (ANFIS). A hybrid learning algorithm, including a back-propagation and least square estimation, is utilized to train ANFIS in MATLAB (software). Accordingly, 432 samples have been applied, through which 300 samples have been considered as training dataset with 132 ones for testing dataset. All results have been analyzed by ANFIS, in which the reliability has been confirmed through the comparing of the results. Consequently, regarding FFNN, RBNN, GRNN, and ANFIS, statistical indexes of coefficient of determination (R2), variance account for (VAF) and root mean square error (RMSE) in the values of (0.957, 0.968, 0.939, 0.902, 0.998), (95.677, 96.814, 93.884, 90.131, 97.442) and (2.176, 1.608, 3.001, 4.39, 0.058) have been achieved for training datasets and the values of (0.951, 0.913, 0.729, 0.685 and 0.995), (95.04, 91.13, 72.745, 66.228, 96.247) and (2.433, 4.032, 8.005, 10.188 and 1.252) are for testing datasets indicating a satisfied reliability of ANFIS in estimating of pullout behavior of belled piles.

Thermal Errors Modeling of a CNC Machine’s Axis Using Neural Network and Fuzzy Logic

2011 ◽  
Vol 110-116 ◽  
pp. 2976-2982 ◽  
Author(s):  
Sina Eskandari ◽  
Behrooz Arezoo ◽  
Amir Abdullah
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Fuzzy Logic ◽  
Mean Squared Error ◽  
Fuzzy Inference ◽  
Previous Method ◽  
Data Set ◽  
Inference System ◽  
Thermal Errors ◽  
Squared Error

Thermal errors of CNC machines have significant effects on precision of a workpiece. One of the approaches to reduce these errors is modeling and on-line compensating them. In this study, thermal errors of an axis of the machine are modeled by means of artificial neural networks along with fuzzy logic. Models are created using experimental data. In neural networks modeling, MLP type which has 2 hidden layers is chosen and it is trained by backpropagation algorithm. Finally, the model is validated with the aid of calculating mean squared error and correlation coefficients between outputs of the model and a checking data set. On the other hand, an adaptive neuro-fuzzy inference system is utilized in fuzzy modeling which uses neural network to develop membership functions as fuzzifiers and defuzzifiers. This network is trained by hybrid algorithm. At the end, model validation is done by mean squared error like previous method. The results show that the errors of both modeling techniques are acceptable and models can predict thermal errors reliably.

Navigational path analysis of mobile robots using an adaptive neuro-fuzzy inference system controller in a dynamic environment

2010 ◽  
Vol 224 (6) ◽  
pp. 1369-1381 ◽  
Author(s):  
D R Parhi ◽  
M K Singh
Keyword(s):  
Neural Network ◽  
Fuzzy Logic ◽  
Mobile Robots ◽  
Fuzzy Inference ◽  
Dynamic Environment ◽  
Fuzzy Logic System ◽  
Inference System ◽  
The Neural Network ◽  
Neuro Fuzzy ◽  
Logic System

This article focuses on the navigational path analysis of mobile robots using the adaptive neuro-fuzzy inference system (ANFIS) in a cluttered dynamic environment. In the ANFIS controller, after the input layer there is a fuzzy layer and the rest of the layers are neural network layers. The adaptive neuro-fuzzy hybrid system combines the advantages of the fuzzy logic system, which deals with explicit knowledge that can be explained and understood, and those of the neural network, which deals with implicit knowledge that can be acquired by learning. The inputs to the fuzzy logic layer include the front obstacle distance, the left obstacle distance, the right obstacle distance, and target steering. A learning algorithm based on the neural network technique has been developed to tune the parameters of fuzzy membership functions, which smooth the trajectory generated by the fuzzy logic system. Using the developed ANFIS controller, the mobile robots are able to avoid static and dynamic obstacles and reach the target successfully in cluttered environments. The experimental results agree well with the simulation results; this proves the authenticity of the theory developed.

scholarly journals DIAGNOSTIC SYSTEM OF DERMATITIS BASED ON FUZZY LOGIC USING MATLAB 7.0

CCIT Journal ◽  
2010 ◽  
Vol 4 (1) ◽  
pp. 89-100
Author(s):  
Eneng Tita Tosida ◽  
Sri Setyaningsih ◽  
Agus Sunarya
Keyword(s):  
Fuzzy Logic ◽  
Medical Diagnosis ◽  
Fuzzy Inference ◽  
Diagnostic System ◽  
Risk Level ◽  
Fuzzy Approach ◽  
Production Rules ◽  
Clinical Context ◽  
Inference System ◽  
Mamdani Fuzzy Inference System

This paper describes a fuzzy approach to computer-aided medical diagnosis in a clinical context for dermatitis. This research will use Mamdani fuzzy inference system for determining Dermatitis risk level. The Diagnostic system of Dermatitis based on Fuzzy logic are constructed with seven indication variables. These variables have different intervals and used for determining status of domains in membership function of variables. Knowledge base in this system is constructed by production rules (IF-THEN). Fire Strength are obtained in each fuzzy rules base for each type of Dermatitis, then composite by using Max-Min method. The final result is an output namely the risk Dermatitis level.

Modelling, Simulation and Optimization of Diagnosis Cardiovascular Disease Using Computational Intelligence Approaches

2020 ◽  
Vol 10 (5) ◽  
pp. 1005-1022 ◽  
Author(s):  
Shahan Yamin Siddiqui ◽  
Atifa Athar ◽  
Muhammad Adnan Khan ◽  
Sagheer Abbas ◽  
Yousaf Saeed ◽  
...  
Keyword(s):  
Neural Network ◽  
Machine Learning ◽  
Cardiovascular Disease ◽  
Artificial Neural Network ◽  
Fuzzy Logic ◽  
Fuzzy Inference ◽  
Learning Approaches ◽  
Inference System ◽  
Artificial Neural ◽  
Hidden Layer

Background: To provide ease to diagnose that serious sickness multi-technique model is proposed. Data Analytics and Machine intelligence are involved in the detection of various diseases for human health care. The computer is used as a tool by experts in the medical field, and the computer-based mechanism is used to diagnose different diseases in patients with high Precision. Due to revolutionary measures employed in Artificial Neural Networks (ANNs) within the research domain in the medical area, which appear to be in the data-driven applications usually described in the domain of health care. Cardio sickness according to name is a type of an ailment that is directly connected to the human heart and blood circulation setup, so it should be diagnosed on time because the delay of diagnosing of that disease may lead the sufferer to death. The research is mainly aimed to design a system that will be able to detect cardiovascular sickness in the sufferer using machine learning approaches. Objective: The main objective of the research is to gather information of the six parameters that is age, chest pain, electrocardiogram, systolic blood pressure, fasting blood sugar and serum cholesterol are used by Mamdani fuzzy expert to detect cardiovascular sickness. To propose a type of device which will be successfully used in overcoming the cardiovascular diseases. This proposed model Diagnosis Cardiovascular Disease using Mamdani Fuzzy Inference System (DCD-MFIS) shows 87.05 percent Precision. To delineate an effective Neural Network Model to predict with greater precision, whether a person is suffering from cardiovascular disease or not. As the ANN is composed of various algorithms, some will be handed down for the training of the network. The main target of the research is to make the use of three techniques, which include fuzzy logic, neural network, and deep machine learning. The research will employ the three techniques along with the previous comparisons, and given that, the results will be compared respectively. Methods: Artificial neural network and deep machine learning techniques are applied to detect cardiovascular sickness. Both techniques are applied using 13 parameters age, gender, chest pain, systolic blood pressure, serum cholesterol, fasting blood sugar, electrocardiogram, exercise including angina, heart rate, old peak, number of vessels, affected person and slope. In this research, the ANN-based research is one of the algorithms collections, which is the detection of cardiovascular diseases, is proposed. ANN constitutes of many algorithms, some of the algorithms are employed in the paper for the training of the network used, to achieve the prediction ratio and in contrast of the comparison of the mutual results shown. Results: To make better analysis and consideration of the three frameworks, which include fuzzy logic, ANN, Deep Extreme Machine Learning. The proposed automated model Diagnosis Cardiovascular Disease includes Fuzzy logic using Mamdani Fuzzy Inference System (DCD-MFIS), Artificial Neural Network (DCD–ANN) and Deep Extreme Machine Learning (DCD–DEML) approach using back propagation system. These frameworks help in attaining greater precision and accuracy. Proposed DCD Deep Extreme Machine Learning attains more accuracy with previously proposed solutions that are 92.45%. Conclusion: From the previous comparisons, the propose automated Diagnosis of Cardiovascular Disease using Fuzzy logic, Artificial Neural Network, and deep extreme machine learning approaches. The automated systems DCDMFIS, DCD–ANN and DCD–DEML, the framework proposed as effective and efficient with 87.05%, 89.4% and 92.45 % success ratios respectively. To verify the performance which lies in the ANNs and computational analysis, many indicators determining the precise performance were calculated. The training of the neural networks is made true using the 10 to 20 neurons layers which denote the hidden layer. DEML reveals and indicates a hidden layer containing 10 neurons, which shows the best result. In the last, we can conclude that after making a consideration among the three techniques fuzzy logic, Artificial Neural Network and Proposed DCD Deep Extreme Machine, the Proposed DCD Deep Extreme Machine Learning based solution give more accuracy with previously proposed solutions that are 92.45%.

scholarly journals Vessel Multi-Parametric Collision Avoidance Decision Model: Fuzzy Approach

2021 ◽  
Vol 9 (1) ◽  
pp. 49
Author(s):  
Tanja Brcko ◽  
Andrej Androjna ◽  
Jure Srše ◽  
Renata Boć
Keyword(s):  
Fuzzy Logic ◽  
Collision Avoidance ◽  
Decision Model ◽  
Fuzzy Inference ◽  
Weather Conditions ◽  
Target Vessel ◽  
Planning Tool ◽  
Inference System ◽  
International Regulations ◽  
Input Variables

The application of fuzzy logic is an effective approach to a variety of circumstances, including solutions to maritime anti-collision problems. The article presents an upgrade of the radar navigation system, in particular, its collision avoidance planning tool, using a decision model that combines dynamic parameters into one decision—the collision avoidance course. In this paper, a multi-parametric decision model based on fuzzy logic is proposed. The model calculates course alteration in a collision avoidance situation. First, the model collects input data of the target vessel and assesses the collision risk. Using time delay, four parameters are calculated for further processing as input variables for a fuzzy inference system. Then, the fuzzy logic method is used to calculate the course alteration, which considers the vessel’s safety domain and International Regulations for Preventing Collisions at Sea (COLREGs). The special feature of the decision model is its tuning with the results of the database of correct solutions obtained with the manual radar plotting method. The validation was carried out with six selected cases simulating encounters with the target vessel in the open sea from different angles and at any visibility. The results of the case studies have shown that the decision model computes well in situations where the own vessel is in a give-way position. In addition, the model provides good results in situations when the target vessel violates COLREG rules. The collision avoidance planning tool can be automated and serve as a basis for further implementation of a model that considers the manoeuvrability of the vessels, weather conditions, and multi-vessel encounter situations.

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