A Fuzzy Cognitive Map‐Based Bi‐Directional Inference Mechanism: An Application to Stock Investment Analysis

Kun Chang Lee and Hyun Soo Kim

Intelligent Systems in Accounting, Finance and Management, 1997, vol. 6, issue 1, 41-57

Abstract: The objective of this paper is to apply fuzzy cognitive map (FCM)‐related techniques to (1) extract causal knowledge from a specific problem‐domain, (2) construct a hierarchical knowledge base, and (3) perform a bi‐directional inference. The causal knowledge base built by FCM can be described as a matrix form, guaranteeing mathematically compact operation compared with a production (if–then) knowledge base. Based on the causal knowledge base, we can break down a given decision problem into a multi‐leveled one. Then bi‐directional (downward or upward) inference can be applied to the multi‐leveled problem to find a more robust solution. We applied our method to a stock investment analysis problem which is typical of highly unstructured problems in OR/MS fields. © 1997 by John Wiley & Sons, Ltd.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1002/(SICI)1099-1174(199703)6:13.0.CO;2-J

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:isacfm:v:6:y:1997:i:1:p:41-57

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1099-1174

Access Statistics for this article

More articles in Intelligent Systems in Accounting, Finance and Management from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().