Introducing a trapezoidal interval type-2 fuzzy regression model

The uncertainty is an important attribute about data that can arise from different sources including randomness and fuzziness, therefore in uncertain environments, especially, in modeling, planning, decision-making, and control under uncertainty, most data available contain some degree of fuzziness, randomness, or both, and at the same time, some of this data may be anomalous (outliers). In this regard, the new fuzzy regression approaches by creating a functional relationship between response and explanatory variables can provide efficient tools to explanation, prediction and possibly control of randomness, fuzziness, and outliers in the data obtained from uncertain environments. In the present study, we propose a new two-stage fuzzy linear regression model based on a new interval type-2 (IT2) fuzzy least absolute deviation (FLAD) method so that regression coefficients and dependent variables are trapezoidal IT2 fuzzy numbers and independent variables are crisp. In the first stage, to estimate the IT2 fuzzy regression coefficients and provide an initial model (by original dataset), we introduce two new distance measures for comparison of IT2 fuzzy numbers and propose a novel framework for solving fuzzy mathematical programming problems. In the second stage, we introduce a new procedure to determine the mild and extreme fuzzy outlier cutoffs and apply them to remove the outliers, and then provide the final model based on a clean dataset. Furthermore, to evaluate the performance of the proposed methodology, we introduce and employ suitable goodness of fit indices. Finally, to illustrate the theoretical results of the proposed method and explain how it can be used to derive the regression model with IT2 trapezoidal fuzzy data, as well as compare the performance of the proposed model with some well-known models using training data designed by Tanaka et al. [55], we provide two numerical examples.

Exploring the Main Effect of e-Banking on the Banking Industry Concentration Degree on Predicting the Future of the Banking Industry: A Case Study

Today, regarding the rapid growth of Information and Communications Technology (ICT), e-commerce, and the subsequent expansion of electronic banking, the banking market structure is also expected to dramatically be changed. This paper aims to explore the main effect of electronic banking on the structure of the Iranian banking industry by investigating the banking market concentration degree. To accomplish this aim, an intelligent hybrid model is developed based on multilayer perceptron neural network and fuzzy regression of the effects of banking on the relative electronic share of banks. In the developed method, the neural network parameters such as weights and errors have been considered as the fuzzy parameters to model it under uncertainty. Ultimately, the descriptive statistics are utilized to evaluate how the difference in relative size of banks concerning e-banking has changed, in addition to exploring the main effect of e-banking on the bank’s contribution described as a neural network-fuzzy regression model. Moreover, it shows how the concentration degree in the Iranian banking sector has been reduced. The implemented analysis of the reasons for this decrease reveals that the share of banks has decreased due to an increase in the share of the small banks. Furthermore, model estimation confirms that there exists a positive relationship between banks’ share and the use of electronic banking. Besides, the small banks have strongly been shown to utilize the e-banking so that it would lead to an increase in their share and a decrease in the concentration degree. As such, it can be concluded that e-banking has reduced the concentration degree in Iran. The descriptive statistics are employed to prove it.

Fuzzy Study on the Winning Rate of Football Game Betting

This study aims to find variables that affect the winning rate of the football team before a match. Qualitative variables such as venue, match importance, performance, and atmosphere of both teams are suggested to predict the outcome. Regression analysis is used to select proper variables. In this study, the performance of the football team is based on the opinions of experts, and the team atmosphere can be calculated with the results of the previous five games. ELO rating represents the state of the opponent. Also, the selected qualitative variables are expressed in fuzzy numbers using fuzzy partitions. A fuzzy regression model for the winning rate of the football team can be estimated by using the least squares method and the least absolute method. It is concluded that the stadium environment, ELO rating, team performance, and importance of the match have effects on the winning rate of Korean National Football (KNF) team from the data on 118 matches.

Fuzzy regression model for forecasting impact of venture capital network and underwriter network on IPO premium

In recent years, social network analysis is one of the top 20 fields of artificial intelligence. Based on the network signal theory, this study examines the influence of the dual network embeddedness on the price premiums of Chinese initial public offerings (IPOs). In this paper we proposed fuzzy regression model for forecasting the impact of venture capital network and underwriter network on IPO premium based on some hypothesis. We find that: (1) Enterprises embedded in the central position of venture capital network will increase the IPO secondary market premium; (2) Secondly, employing underwriter in the central position of underwriting network will increase the IPO secondary market premium; (3) As venture capital are getting closer to the central position of venture capital network, the influence of underwriter network centrality in underwriting network on the increase of IPO secondary market reaction will gradually weaken. The research shows that occupying central position both in venture capital syndication network and underwriting network have the functions of sending signals, then increase the IPO secondary market premium, but the functions of different network signals will replace each other.

Optimized recurrent neural network with fuzzy classifier for data prediction using hybrid optimization algorithm: Scope towards diverse applications

Today, data processing has become a challenging task due to the significant increase in the amount of data collected using various sensors. To put up knowledge and forecast the data, the existing data mining techniques compute all numerical attributes in the memory simultaneously. However, the over-abundance of entire factors in the data makes accurate prediction infeasible. This paper attempts to implement a new data prediction model using an optimized machine learning algorithm. The proposed data prediction model involves four main phases: (a) data acquisition, (b) feature extraction, (c) data normalization, and (d) prediction. Initially, few data from the UCI repository like Bike Sharing Dataset, Carbon Nanotubes, Concrete Compressive Strength, Electrical Grid Stability Simulated Data, and SkillCraft-1 Master Table are collected. Further, the feature extraction process extracts the first-order statistics like mean, median, standard deviation, the maximum value of entire data, and the minimum value of entire data, and the second-order statistics like kurtosis, skewness, energy, and entropy. Next, the data or feature normalization is done to arrange the data within a certain limit. The normalized features are then subjected to a hybrid prediction system by integrating the Recurrent Neural Network (RNN) and Fuzzy Regression model. As a modification, the number of hidden neurons in the RNN and membership limits of the Fuzzy Regression model are optimized by a hybrid optimization algorithm by merging the concepts of Whale Optimization Algorithm (WOA) and Cat Swarm Optimization (CSO), which is called the Whale Updated Seek Mode-based CSO (WS-CSO) algorithm. Then, the efficiency of the optimized hybrid classifier for all-time prediction of data in different applications is confirmed based on its valuable performance and comparative analysis.

On Optimal and Asymptotic Properties of a Fuzzy L2 Estimator

A fuzzy least squares estimator in the multiple with fuzzy-input–fuzzy-output linear regression model is considered. The paper provides a formula for the L2 estimator of the fuzzy regression model. This paper proposes several operations for fuzzy numbers and fuzzy matrices with fuzzy components and discussed some algebraic properties that are needed to use for proving theorems. Using the proposed operations, the formula for the variance, provided and this paper, proves that the estimators have several important optimal properties and asymptotic properties: they are Best Linear Unbiased Estimator (BLUE), asymptotic normality and strong consistency. The confidence regions of the coefficient parameters and the asymptotic relative efficiency (ARE) are also discussed. In addition, several examples are provided including a Monte Carlo simulation study showing the validity of the proposed theorems.