Credit risk management is a process in which banks estimate probability of default (PD) for each loan applicant. Data sets of previous loan applicants are built by gathering their data, and these internal data sets are usually completed using external credit bureau’s data and finally used for estimating PD in banks. There is also a continuous interest for bank to use rule based classifiers to b...

Previously we proposed a scheme to generate fuzzy rule-based multiclassification systems by means of bagging, mutual information-based feature selection, and a multicriteria genetic algorithm (GA) for static component classifier selection guided by the ensemble training error. In the current contribution we extend the latter component by the use of two bi-criteria fitness functions, combining t...

In this paper, we evaluate and contrast two fuzzy classifiers for credit scoring. The first classifier uses evolutionary optimisation and boosting whereas the second classifier is based on a fuzzy neural network. We show that, for the case at hand, the boosted genetic fuzzy classifier performs better than both the neurofuzzy classifier and the well-known C4.5 algorithm that we included as a ref...

The terminal nodes of a binary tree classifier represent discrete classes to be recognized. In this paper the classes are considered to be fuzzy sets in which a specific sample can belong to more than one class with different degrees of membership. The terminal nodes is this case will contain information about the degrees to which test samples belong to particular classes. This will allow the d...

recently, tuning the weights of the rules in fuzzy rule-base classification systems is researched in order to improve the accuracy of classification. in this paper, a margin-based optimization model, inspired by support vector machine classifiers, is proposed to compute these fuzzy rule weights. this approach not only  considers both accuracy and generalization criteria in a single objective fu...

Fuzzy logic and genetic algorithms are well-established computational techniques that have been employed to deal with the problem of classification as this is presented in the context of data mining. Based on Fuzzy Miner which is a recently proposed state-of-the-art fuzzy rule based system for numerical data, in this paper we propose GF-Miner which is a genetic fuzzy classifier that improves Fu...

An integrated Rough Set approach is proposed to discover the historical operation rules of irrigation purpose reservoirs. Operation rules are derived by expressing monthly releases as functions of reservoir stored volume, inflow and outflow. This is accomplished through the Rough Set approach and the use of performance indices able to recognize the effective rules used in water supply managemen...