Application of Fuzzy Classification in Bankruptcy Prediction
نویسندگان
چکیده
Classification refers to a set of methods that predict the class of an object from attributes or features describing the object. In this paper we present a fuzzy classification algorithm to predict bankruptcy. Our classification algorithm is modified from a subspace clustering algorithm called fuzzy subspace clustering (FSC). As our algorithm associates each feature of a class with a fuzzy membership, feature selection is not necessary. Our experiments show that the classification results produced by our algorithm can translate into large financial and other benefits to organizations through such activities as credit approval, and loan portfolio and security management.
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