Search results for: risk classification
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 2113

Search results for: risk classification

1513 The Gerber-Shiu Functions of a Risk Model with Two Classes of Claims and Random Income

Authors: Shan Gao

Abstract:

In this paper, we consider a risk model involving two independent classes of insurance risks and random premium income. We assume that the premium income process is a Poisson Process, and the claim number processes are independent Poisson and generalized Erlang(n) processes, respectively. Both of the Gerber- Shiu functions with zero initial surplus and the probability generating functions (p.g.f.) of the Gerber-Shiu functions are obtained.

Keywords: Poisson process, generalized Erlang risk process, Gerber-Shiu function, generating function, generalized Lundberg equation.

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1512 The Risk and Value Engineering Structures and their Integration with Industrial Projects Management (A Case Study on I. K.Corporation)

Authors: Lida Haghnegahdar, Ezzatollah Asgharizadeh

Abstract:

Value engineering is an efficacious contraption for administrators to make up their minds. Value perusals proffer the gaffers a suitable instrument to decrease the expenditures of the life span, quality amelioration, structural improvement, curtailment of the construction schedule, longevity prolongation or a merging of the aforementioned cases. Subjecting organizers to pressures on one hand and their accountability towards their pertinent fields together with inherent risks and ambiguities of other options on the other hand set some comptrollers in a dilemma utilization of risk management and the value engineering in projects manipulation with regard to complexities of implementing projects can be wielded as a contraption to identify and efface each item which wreaks unnecessary expenses and time squandering sans inflicting any damages upon the essential project applications. Of course It should be noted that implementation of risk management and value engineering with regard to the betterment of efficiency and functions may lead to the project implementation timing elongation. Here time revamping does not refer to time diminishing in the whole cases. his article deals with risk and value engineering conceptualizations at first. The germane reverberations effectuated due to its execution in Iran Khodro Corporation are regarded together with the joint features and amalgamation of the aforesaid entia; hence the proposed blueprint is submitted to be taken advantage of in engineering and industrial projects including Iran Khodro Corporation.

Keywords: Management, risk engineering, value engineering, project manipulation, Iran Khodro.

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1511 ANFIS Approach for Locating Faults in Underground Cables

Authors: Magdy B. Eteiba, Wael Ismael Wahba, Shimaa Barakat

Abstract:

This paper presents a fault identification, classification and fault location estimation method based on Discrete Wavelet Transform and Adaptive Network Fuzzy Inference System (ANFIS) for medium voltage cable in the distribution system.

Different faults and locations are simulated by ATP/EMTP, and then certain selected features of the wavelet transformed signals are used as an input for a training process on the ANFIS. Then an accurate fault classifier and locator algorithm was designed, trained and tested using current samples only. The results obtained from ANFIS output were compared with the real output. From the results, it was found that the percentage error between ANFIS output and real output is less than three percent. Hence, it can be concluded that the proposed technique is able to offer high accuracy in both of the fault classification and fault location.

Keywords: ANFIS, Fault location, Underground Cable, Wavelet Transform.

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1510 An Analysis of Classification of Imbalanced Datasets by Using Synthetic Minority Over-Sampling Technique

Authors: Ghada A. Alfattni

Abstract:

Analysing unbalanced datasets is one of the challenges that practitioners in machine learning field face. However, many researches have been carried out to determine the effectiveness of the use of the synthetic minority over-sampling technique (SMOTE) to address this issue. The aim of this study was therefore to compare the effectiveness of the SMOTE over different models on unbalanced datasets. Three classification models (Logistic Regression, Support Vector Machine and Nearest Neighbour) were tested with multiple datasets, then the same datasets were oversampled by using SMOTE and applied again to the three models to compare the differences in the performances. Results of experiments show that the highest number of nearest neighbours gives lower values of error rates. 

Keywords: Imbalanced datasets, SMOTE, machine learning, logistic regression, support vector machine, nearest neighbour.

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1509 Operational Risk – Scenario Analysis

Authors: Milan Rippel, Petr Teply

Abstract:

This paper focuses on operational risk measurement techniques and on economic capital estimation methods. A data sample of operational losses provided by an anonymous Central European bank is analyzed using several approaches. Loss Distribution Approach and scenario analysis method are considered. Custom plausible loss events defined in a particular scenario are merged with the original data sample and their impact on capital estimates and on the financial institution is evaluated. Two main questions are assessed – What is the most appropriate statistical method to measure and model operational loss data distribution? and What is the impact of hypothetical plausible events on the financial institution? The g&h distribution was evaluated to be the most suitable one for operational risk modeling. The method based on the combination of historical loss events modeling and scenario analysis provides reasonable capital estimates and allows for the measurement of the impact of extreme events on banking operations.

Keywords: operational risk, scenario analysis, economic capital, loss distribution approach, extreme value theory, stress testing

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1508 Estimation Model of Dry Docking Duration Using Data Mining

Authors: Isti Surjandari, Riara Novita

Abstract:

Maintenance is one of the most important activities in the shipyard industry. However, sometimes it is not supported by adequate services from the shipyard, where inaccuracy in estimating the duration of the ship maintenance is still common. This makes estimation of ship maintenance duration is crucial. This study uses Data Mining approach, i.e., CART (Classification and Regression Tree) to estimate the duration of ship maintenance that is limited to dock works or which is known as dry docking. By using the volume of dock works as an input to estimate the maintenance duration, 4 classes of dry docking duration were obtained with different linear model and job criteria for each class. These linear models can then be used to estimate the duration of dry docking based on job criteria.

Keywords: Classification and regression tree (CART), data mining, dry docking, maintenance duration.

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1507 Designing an Optimal Safe Layout for a Fuel Storage Tanks Farm: Case Study of Jaipur Oil Depot

Authors: Moosa Haji Abbasi, Emad Benhelal, Arshad Ahmad

Abstract:

Storage tank farms are essential industrial facilities to accumulate oil, petrochemicals and gaseous products. Since tank farms contain huge mass of fuel and hazardous materials, they are always targets of serious accidents such as fire, explosion, spill and toxic release which may cause severe impacts on human health, environmental and properties.

Although having a safe layout is not able to prevent initiating accidents, however it effectively controls and reduces the adverse impact of such accidents.

The aim of this paper is to determine the optimal layout for a storage tank contains different type of hydrocarbon fuels. A quantitative risk assessment is carried out on a selected tank farm in Jaipur, India, with particular attention given to both the consequence modeling and the overall risk assessment using PHAST Software. Various designs of tank layouts are examined taking into consideration several issues of plant operations and maintenance. In all stages of the work, standard guidelines specified by the industry are considered and recommendations are substantiated with simulation results and risk quantification.

Keywords: Tank farm, safe distance, safe layout, risk assessment, PHAST.

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1506 Liver Tumor Detection by Classification through FD Enhancement of CT Image

Authors: N. Ghatwary, A. Ahmed, H. Jalab

Abstract:

In this paper, an approach for the liver tumor detection in computed tomography (CT) images is represented. The detection process is based on classifying the features of target liver cell to either tumor or non-tumor. Fractional differential (FD) is applied for enhancement of Liver CT images, with the aim of enhancing texture and edge features. Later on, a fusion method is applied to merge between the various enhanced images and produce a variety of feature improvement, which will increase the accuracy of classification. Each image is divided into NxN non-overlapping blocks, to extract the desired features. Support vector machines (SVM) classifier is trained later on a supplied dataset different from the tested one. Finally, the block cells are identified whether they are classified as tumor or not. Our approach is validated on a group of patients’ CT liver tumor datasets. The experiment results demonstrated the efficiency of detection in the proposed technique.

Keywords: Fractional differential (FD), Computed Tomography (CT), fusion.

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1505 Clustering Multivariate Empiric Characteristic Functions for Multi-Class SVM Classification

Authors: María-Dolores Cubiles-de-la-Vega, Rafael Pino-Mejías, Esther-Lydia Silva-Ramírez

Abstract:

A dissimilarity measure between the empiric characteristic functions of the subsamples associated to the different classes in a multivariate data set is proposed. This measure can be efficiently computed, and it depends on all the cases of each class. It may be used to find groups of similar classes, which could be joined for further analysis, or it could be employed to perform an agglomerative hierarchical cluster analysis of the set of classes. The final tree can serve to build a family of binary classification models, offering an alternative approach to the multi-class SVM problem. We have tested this dendrogram based SVM approach with the oneagainst- one SVM approach over four publicly available data sets, three of them being microarray data. Both performances have been found equivalent, but the first solution requires a smaller number of binary SVM models.

Keywords: Cluster Analysis, Empiric Characteristic Function, Multi-class SVM, R.

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1504 Classification of Business Models of Italian Bancassurance by Balance Sheet Indicators

Authors: Andrea Bellucci, Martina Tofi

Abstract:

The aim of paper is to analyze business models of bancassurance in Italy for life business. The life insurance business is very developed in the Italian market and banks branches have 80% of the market share. Given its maturity, the life insurance market needs to consolidate its organizational form to allow for the development of non-life business, which nowadays collects few premiums but represents a great opportunity to enlarge the market share of bancassurance using its strength in the distribution channel while the market share of independent agents is decreasing. Starting with the main business model of bancassurance for life business, this paper will analyze the performances of life companies in the Italian market by balance sheet indicators and by main discriminant variables of business models. The study will observe trends from 2013 to 2015 for the Italian market by exploiting a database managed by Associazione Nazionale delle Imprese di Assicurazione (ANIA). The applied approach is based on a bottom-up analysis starting with variables and indicators to define business models’ classification. The statistical classification algorithm proposed by Ward is employed to design business models’ profiles. Results from the analysis will be a representation of the main business models built by their profile related to indicators. In that way, an unsupervised analysis is developed that has the limit of its judgmental dimension based on research opinion, but it is possible to obtain a design of effective business models.

Keywords: Balance sheet indicators, Bancassurance, business models, ward algorithm.

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1503 Stability Bound of Ruin Probability in a Reduced Two-Dimensional Risk Model

Authors: Zina Benouaret, Djamil Aissani

Abstract:

In this work, we introduce the qualitative and quantitative concept of the strong stability method in the risk process modeling two lines of business of the same insurance company or an insurance and re-insurance companies that divide between them both claims and premiums with a certain proportion. The approach proposed is based on the identification of the ruin probability associate to the model considered, with a stationary distribution of a Markov random process called a reversed process. Our objective, after clarifying the condition and the perturbation domain of parameters, is to obtain the stability inequality of the ruin probability which is applied to estimate the approximation error of a model with disturbance parameters by the considered model. In the stability bound obtained, all constants are explicitly written.

Keywords: Markov chain, risk models, ruin probabilities, strong stability analysis.

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1502 Target Signal Detection Using MUSIC Spectrum in Noise Environment

Authors: Sangjun Park, Sangbae Jeong, Moonsung Han, Minsoo hahn

Abstract:

In this paper, a target signal detection method using multiple signal classification (MUSIC) algorithm is proposed. The MUSIC algorithm is a subspace-based direction of arrival (DOA) estimation method. The algorithm detects the DOAs of multiple sources using the inverse of the eigenvalue-weighted eigen spectra. To apply the algorithm to target signal detection for GSC-based beamforming, we utilize its spectral response for the target DOA in noisy conditions. For evaluation of the algorithm, the performance of the proposed target signal detection method is compared with that of the normalized cross-correlation (NCC), the fixed beamforming, and the power ratio method. Experimental results show that the proposed algorithm significantly outperforms the conventional ones in receiver operating characteristics(ROC) curves.

Keywords: Beamforming, direction of arrival, multiple signal classification, target signal detection.

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1501 Hybrid Neural Network Methods for Lithology Identification in the Algerian Sahara

Authors: S. Chikhi, M. Batouche, H. Shout

Abstract:

In this paper, we combine a probabilistic neural method with radial-bias functions in order to construct the lithofacies of the wells DF01, DF02 and DF03 situated in the Triassic province of Algeria (Sahara). Lithofacies is a crucial problem in reservoir characterization. Our objective is to facilitate the experts' work in geological domain and to allow them to obtain quickly the structure and the nature of lands around the drilling. This study intends to design a tool that helps automatic deduction from numerical data. We used a probabilistic formalism to enhance the classification process initiated by a Self-Organized Map procedure. Our system gives lithofacies, from well-log data, of the concerned reservoir wells in an aspect easy to read by a geology expert who identifies the potential for oil production at a given source and so forms the basis for estimating the financial returns and economic benefits.

Keywords: Classification, Lithofacies, Probabilistic formalism, Reservoir characterization, Well-log data.

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1500 Classification Based on Deep Neural Cellular Automata Model

Authors: Yasser F. Hassan

Abstract:

Deep learning structure is a branch of machine learning science and greet achievement in research and applications. Cellular neural networks are regarded as array of nonlinear analog processors called cells connected in a way allowing parallel computations. The paper discusses how to use deep learning structure for representing neural cellular automata model. The proposed learning technique in cellular automata model will be examined from structure of deep learning. A deep automata neural cellular system modifies each neuron based on the behavior of the individual and its decision as a result of multi-level deep structure learning. The paper will present the architecture of the model and the results of simulation of approach are given. Results from the implementation enrich deep neural cellular automata system and shed a light on concept formulation of the model and the learning in it.

Keywords: Cellular automata, neural cellular automata, deep learning, classification.

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1499 Rank-Based Chain-Mode Ensemble for Binary Classification

Authors: Chongya Song, Kang Yen, Alexander Pons, Jin Liu

Abstract:

In the field of machine learning, the ensemble has been employed as a common methodology to improve the performance upon multiple base classifiers. However, the true predictions are often canceled out by the false ones during consensus due to a phenomenon called “curse of correlation” which is represented as the strong interferences among the predictions produced by the base classifiers. In addition, the existing practices are still not able to effectively mitigate the problem of imbalanced classification. Based on the analysis on our experiment results, we conclude that the two problems are caused by some inherent deficiencies in the approach of consensus. Therefore, we create an enhanced ensemble algorithm which adopts a designed rank-based chain-mode consensus to overcome the two problems. In order to evaluate the proposed ensemble algorithm, we employ a well-known benchmark data set NSL-KDD (the improved version of dataset KDDCup99 produced by University of New Brunswick) to make comparisons between the proposed and 8 common ensemble algorithms. Particularly, each compared ensemble classifier uses the same 22 base classifiers, so that the differences in terms of the improvements toward the accuracy and reliability upon the base classifiers can be truly revealed. As a result, the proposed rank-based chain-mode consensus is proved to be a more effective ensemble solution than the traditional consensus approach, which outperforms the 8 ensemble algorithms by 20% on almost all compared metrices which include accuracy, precision, recall, F1-score and area under receiver operating characteristic curve.

Keywords: Consensus, curse of correlation, imbalanced classification, rank-based chain-mode ensemble.

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1498 An Optimal Feature Subset Selection for Leaf Analysis

Authors: N. Valliammal, S.N. Geethalakshmi

Abstract:

This paper describes an optimal approach for feature subset selection to classify the leaves based on Genetic Algorithm (GA) and Kernel Based Principle Component Analysis (KPCA). Due to high complexity in the selection of the optimal features, the classification has become a critical task to analyse the leaf image data. Initially the shape, texture and colour features are extracted from the leaf images. These extracted features are optimized through the separate functioning of GA and KPCA. This approach performs an intersection operation over the subsets obtained from the optimization process. Finally, the most common matching subset is forwarded to train the Support Vector Machine (SVM). Our experimental results successfully prove that the application of GA and KPCA for feature subset selection using SVM as a classifier is computationally effective and improves the accuracy of the classifier.

Keywords: Optimization, Feature extraction, Feature subset, Classification, GA, KPCA, SVM and Computation

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1497 The Links between Cardiovascular Risk and Psychological Wellbeing in Elderly

Authors: Laura Sapranaviciute-Zabazlajeva, Abdonas Tamosiunas, Dalia Luksiene, Dalia Virviciute

Abstract:

The cardiovascular diseases (CVD) is the leading cause of death in the EU, especially in the middle aged and elderly population. Psychological wellbeing (PWB) has been linked with better cardiovascular health and survival in the elderly. The aim of the study is to evaluate associations between CVD risk and PWB in middle-aged and elderly population. 10,940 middle aged and older Lithuanians of age 45-74 years, were invited to participate in the study. A study sample was a random and stratified by gender and age. In 2006-2008 7,087 responders participated in the survey, so the response rate was 64.8%. A follow-up study was conducted from 2006 till 2015. New CVD cases and deaths from CVD were evaluated using the Kaunas population-based CVD register and death register of Kaunas. Study results revealed that good PWB predicts longer life in female participants (Log Rank = 13.7, p < 0.001). In the fully adjusted model for socio-demographic, social and CVD risk factors, hazard ratio for CVD mortality risk was lower amongst women with good PWB (HR = 0.28, 95% CI 0.11-0.72), but not significantly for men. Our study concludes, that lower CVD mortality rates is being associated with better PWB in female aged 45-74 years.

Keywords: Psychological wellbeing, cardiovascular disease, elderly.

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1496 Analysis of Supply Chain Risk Management Strategies: Case Study of Supply Chain Disruptions

Authors: Marcelo Dias Carvalho, Leticia Ishikawa

Abstract:

Supply Chain Risk Management refers to a set of strategies used by companies to avoid supply chain disruption caused by damage at production facilities, natural disasters, capacity issues, inventory problems, incorrect forecasts, and delays. Many companies use the techniques of the Toyota Production System, which in a way goes against a better management of supply chain risks. This paper studies key events in some multinationals to analyze the trade-off between the best supply chain risk management techniques and management policies designed to create lean enterprises. The result of a good balance of these actions is the reduction of losses, increased customer trust in the company and better preparedness to face the general risks of a supply chain.

Keywords: Supply chain disruptions, supply chain management, supply chain resilience, just-in-time production, lean manufacturing.

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1495 Multidimensional Data Mining by Means of Randomly Travelling Hyper-Ellipsoids

Authors: Pavel Y. Tabakov, Kevin Duffy

Abstract:

The present study presents a new approach to automatic data clustering and classification problems in large and complex databases and, at the same time, derives specific types of explicit rules describing each cluster. The method works well in both sparse and dense multidimensional data spaces. The members of the data space can be of the same nature or represent different classes. A number of N-dimensional ellipsoids are used for enclosing the data clouds. Due to the geometry of an ellipsoid and its free rotation in space the detection of clusters becomes very efficient. The method is based on genetic algorithms that are used for the optimization of location, orientation and geometric characteristics of the hyper-ellipsoids. The proposed approach can serve as a basis for the development of general knowledge systems for discovering hidden knowledge and unexpected patterns and rules in various large databases.

Keywords: Classification, clustering, data minig, genetic algorithms.

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1494 Error-Robust Nature of Genome Profiling Applied for Clustering of Species Demonstrated by Computer Simulation

Authors: Shamim Ahmed Koichi Nishigaki

Abstract:

Genome profiling (GP), a genotype based technology, which exploits random PCR and temperature gradient gel electrophoresis, has been successful in identification/classification of organisms. In this technology, spiddos (Species identification dots) and PaSS (Pattern similarity score) were employed for measuring the closeness (or distance) between genomes. Based on the closeness (PaSS), we can buildup phylogenetic trees of the organisms. We noticed that the topology of the tree is rather robust against the experimental fluctuation conveyed by spiddos. This fact was confirmed quantitatively in this study by computer-simulation, providing the limit of the reliability of this highly powerful methodology. As a result, we could demonstrate the effectiveness of the GP approach for identification/classification of organisms.

Keywords: Fluctuation, Genome profiling (GP), Pattern similarity score (PaSS), Robustness, Spiddos-shift.

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1493 Segmentation of Korean Words on Korean Road Signs

Authors: Lae-Jeong Park, Kyusoo Chung, Jungho Moon

Abstract:

This paper introduces an effective method of segmenting Korean text (place names in Korean) from a Korean road sign image. A Korean advanced directional road sign is composed of several types of visual information such as arrows, place names in Korean and English, and route numbers. Automatic classification of the visual information and extraction of Korean place names from the road sign images make it possible to avoid a lot of manual inputs to a database system for management of road signs nationwide. We propose a series of problem-specific heuristics that correctly segments Korean place names, which is the most crucial information, from the other information by leaving out non-text information effectively. The experimental results with a dataset of 368 road sign images show 96% of the detection rate per Korean place name and 84% per road sign image.

Keywords: Segmentation, road signs, characters, classification.

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1492 A New Approach for Prioritization of Failure Modes in Design FMEA using ANOVA

Authors: Sellappan Narayanagounder, Karuppusami Gurusami

Abstract:

The traditional Failure Mode and Effects Analysis (FMEA) uses Risk Priority Number (RPN) to evaluate the risk level of a component or process. The RPN index is determined by calculating the product of severity, occurrence and detection indexes. The most critically debated disadvantage of this approach is that various sets of these three indexes may produce an identical value of RPN. This research paper seeks to address the drawbacks in traditional FMEA and to propose a new approach to overcome these shortcomings. The Risk Priority Code (RPC) is used to prioritize failure modes, when two or more failure modes have the same RPN. A new method is proposed to prioritize failure modes, when there is a disagreement in ranking scale for severity, occurrence and detection. An Analysis of Variance (ANOVA) is used to compare means of RPN values. SPSS (Statistical Package for the Social Sciences) statistical analysis package is used to analyze the data. The results presented are based on two case studies. It is found that the proposed new methodology/approach resolves the limitations of traditional FMEA approach.

Keywords: Failure mode and effects analysis, Risk priority code, Critical failure mode, Analysis of variance.

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1491 Emotion Recognition Using Neural Network: A Comparative Study

Authors: Nermine Ahmed Hendy, Hania Farag

Abstract:

Emotion recognition is an important research field that finds lots of applications nowadays. This work emphasizes on recognizing different emotions from speech signal. The extracted features are related to statistics of pitch, formants, and energy contours, as well as spectral, perceptual and temporal features, jitter, and shimmer. The Artificial Neural Networks (ANN) was chosen as the classifier. Working on finding a robust and fast ANN classifier suitable for different real life application is our concern. Several experiments were carried out on different ANN to investigate the different factors that impact the classification success rate. Using a database containing 7 different emotions, it will be shown that with a proper and careful adjustment of features format, training data sorting, number of features selected and even the ANN type and architecture used, a success rate of 85% or even more can be achieved without increasing the system complicity and the computation time

Keywords: Classification, emotion recognition, features extraction, feature selection, neural network

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1490 A Study on the Application of Machine Learning and Deep Learning Techniques for Skin Cancer Detection

Authors: Hritwik Ghosh, Irfan Sadiq Rahat, Sachi Nandan Mohanty, J. V. R. Ravindra, Abdus Sobur

Abstract:

In the rapidly evolving landscape of medical diagnostics, the early detection and accurate classification of skin cancer remain paramount for effective treatment outcomes. This research delves into the transformative potential of artificial intelligence (AI), specifically deep learning (DL), as a tool for discerning and categorizing various skin conditions. Utilizing a diverse dataset of 3,000 images, representing nine distinct skin conditions, we confront the inherent challenge of class imbalance. This imbalance, where conditions like melanomas are over-represented, is addressed by incorporating class weights during the model training phase, ensuring an equitable representation of all conditions in the learning process. Our approach presents a hybrid model, amalgamating the strengths of two renowned convolutional neural networks (CNNs), VGG16 and ResNet50. These networks, pre-trained on the ImageNet dataset, are adept at extracting intricate features from images. By synergizing these models, our research aims to capture a holistic set of features, thereby bolstering classification performance. Preliminary findings underscore the hybrid model's superiority over individual models, showcasing its prowess in feature extraction and classification. Moreover, the research emphasizes the significance of rigorous data pre-processing, including image resizing, color normalization, and segmentation, in ensuring data quality and model reliability. In essence, this study illuminates the promising role of AI and DL in revolutionizing skin cancer diagnostics, offering insights into its potential applications in broader medical domains.

Keywords: Artificial intelligence, machine learning, deep learning, skin cancer, dermatology, convolutional neural networks, image classification, computer vision, healthcare technology, cancer detection, medical imaging.

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1489 Attention Multiple Instance Learning for Cancer Tissue Classification in Digital Histopathology Images

Authors: Afaf Alharbi, Qianni Zhang

Abstract:

The identification of malignant tissue in histopathological slides holds significant importance in both clinical settings and pathology research. This paper presents a methodology aimed at automatically categorizing cancerous tissue through the utilization of a multiple instance learning framework. This framework is specifically developed to acquire knowledge of the Bernoulli distribution of the bag label probability by employing neural networks. Furthermore, we put forward a neural network-based permutation-invariant aggregation operator, equivalent to attention mechanisms, which is applied to the multi-instance learning network. Through empirical evaluation on an openly available colon cancer histopathology dataset, we provide evidence that our approach surpasses various conventional deep learning methods.

Keywords: Attention Multiple Instance Learning, Multiple Instance Learning, transfer learning, histopathological slides, cancer tissue classification.

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1488 Assessment-Assisted and Relationship-Based Financial Advising: Using an Empirical Assessment to Understand Personal Investor Risk Tolerance in Professional Advising Relationships

Authors: Jerry Szatko, Edan L. Jorgensen, Stacia Jorgensen

Abstract:

A crucial component to the success of any financial advising relationship is for the financial professional to understand the perceptions, preferences and thought-processes carried by the financial clients they serve. Armed with this information, financial professionals are more quickly able to understand how they can tailor their approach to best match the individual preferences and needs of each personal investor. Our research explores the use of a quantitative assessment tool in the financial services industry to assist in the identification of the personal investor’s consumer behaviors, especially in terms of financial risk tolerance, as it relates to their financial decision making. Through this process, the Unitifi Consumer Insight Tool (UCIT) was created and refined to capture and categorize personal investor financial behavioral categories and the financial personality tendencies of individuals prior to the initiation of a financial advisement relationship. This paper discusses the use of this tool to place individuals in one of four behavior-based financial risk tolerance categories. Our discoveries and research were aided through administration of a web-based survey to a group of over 1,000 individuals. Our findings indicate that it is possible to use a quantitative assessment tool to assist in predicting the behavioral tendencies of personal consumers when faced with consumer financial risk and decisions.

Keywords: Behavior based advising, behavioral finance, financial advising, financial advisor tools, financial risk tolerance.

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1487 Foot Recognition Using Deep Learning for Knee Rehabilitation

Authors: Rakkrit Duangsoithong, Jermphiphut Jaruenpunyasak, Alba Garcia

Abstract:

The use of foot recognition can be applied in many medical fields such as the gait pattern analysis and the knee exercises of patients in rehabilitation. Generally, a camera-based foot recognition system is intended to capture a patient image in a controlled room and background to recognize the foot in the limited views. However, this system can be inconvenient to monitor the knee exercises at home. In order to overcome these problems, this paper proposes to use the deep learning method using Convolutional Neural Networks (CNNs) for foot recognition. The results are compared with the traditional classification method using LBP and HOG features with kNN and SVM classifiers. According to the results, deep learning method provides better accuracy but with higher complexity to recognize the foot images from online databases than the traditional classification method.

Keywords: Convolutional neural networks, deep learning, foot recognition, knee rehabilitation.

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1486 MIM: A Species Independent Approach for Classifying Coding and Non-Coding DNA Sequences in Bacterial and Archaeal Genomes

Authors: Achraf El Allali, John R. Rose

Abstract:

A number of competing methodologies have been developed to identify genes and classify DNA sequences into coding and non-coding sequences. This classification process is fundamental in gene finding and gene annotation tools and is one of the most challenging tasks in bioinformatics and computational biology. An information theory measure based on mutual information has shown good accuracy in classifying DNA sequences into coding and noncoding. In this paper we describe a species independent iterative approach that distinguishes coding from non-coding sequences using the mutual information measure (MIM). A set of sixty prokaryotes is used to extract universal training data. To facilitate comparisons with the published results of other researchers, a test set of 51 bacterial and archaeal genomes was used to evaluate MIM. These results demonstrate that MIM produces superior results while remaining species independent.

Keywords: Coding Non-coding Classification, Entropy, GeneRecognition, Mutual Information.

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1485 Probabilistic Crash Prediction and Prevention of Vehicle Crash

Authors: Lavanya Annadi, Fahimeh Jafari

Abstract:

Transportation brings immense benefits to society, but it also has its costs. Costs include the cost of infrastructure, personnel, and equipment, but also the loss of life and property in traffic accidents on the road, delays in travel due to traffic congestion, and various indirect costs in terms of air transport. This research aims to predict the probabilistic crash prediction of vehicles using Machine Learning due to natural and structural reasons by excluding spontaneous reasons, like overspeeding, etc., in the United States. These factors range from meteorological elements such as weather conditions, precipitation, visibility, wind speed, wind direction, temperature, pressure, and humidity, to human-made structures, like road structure components such as Bumps, Roundabouts, No Exit, Turning Loops, Give Away, etc. The probabilities are categorized into ten distinct classes. All the predictions are based on multiclass classification techniques, which are supervised learning. This study considers all crashes in all states collected by the US government. The probability of the crash was determined by employing Multinomial Expected Value, and a classification label was assigned accordingly. We applied three classification models, including multiclass Logistic Regression, Random Forest and XGBoost. The numerical results show that XGBoost achieved a 75.2% accuracy rate which indicates the part that is being played by natural and structural reasons for the crash. The paper has provided in-depth insights through exploratory data analysis.

Keywords: Road safety, crash prediction, exploratory analysis, machine learning.

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1484 Using Swarm Intelligence for Improving Accuracy of Fuzzy Classifiers

Authors: Hassan M. Elragal

Abstract:

This paper discusses a method for improving accuracy of fuzzy-rule-based classifiers using particle swarm optimization (PSO). Two different fuzzy classifiers are considered and optimized. The first classifier is based on Mamdani fuzzy inference system (M_PSO fuzzy classifier). The second classifier is based on Takagi- Sugeno fuzzy inference system (TS_PSO fuzzy classifier). The parameters of the proposed fuzzy classifiers including premise (antecedent) parameters, consequent parameters and structure of fuzzy rules are optimized using PSO. Experimental results show that higher classification accuracy can be obtained with a lower number of fuzzy rules by using the proposed PSO fuzzy classifiers. The performances of M_PSO and TS_PSO fuzzy classifiers are compared to other fuzzy based classifiers

Keywords: Fuzzy classifier, Optimization of fuzzy systemparameters, Particle swarm optimization, Pattern classification.

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