An evolutionary computing approach to minimize dynamic hedging error

The objective of our present paper is to derive a computationally efficient genetic pattern learning algorithm to evolutionarily derive the optimal rebalancing weights (i.e. dynamic hedge ratios) to engineer a structured financial product out of a multiasset, best-of option. The stochastic target function is formulated as an expected squared cost of hedging (tracking) error which is assumed to be partly dependent on the governing Markovian process underlying the individual asset returns and partly on
randomness i.e. pure white noise. A simple haploid genetic algorithm is advanced as an alternative numerical scheme, which is deemed to be
computationally more efficient than numerically deriving an explicit solution to the formulated optimization model. An extension to our proposed scheme is suggested by means of adapting the Genetic Algorithm parameters based on fuzzy logic controllers.

Risk allocation in public-private partnership projects : an innovative model with an intelligent approach

Both the increasing private participation in public projects and the critical importance of appropriate risk allocation to the success of Public-private partnership (PPP) projects justify specific research on how to establish effective risk allocation strategies in PPP projects. Partner’s risk management capability is currently the main concern to risk allocation in PPP projects. Following the transaction cost economics, it is argued that factors such as partner’s commitment and risk management structure should be considered simultaneously in order to develop effective risk allocation strategies. Based on the holistic capability-commitment governance-driven view, this paper proposed a model for generating an optimal risk allocation strategy in PPP projects. The model is demonstrated and described. An artificial intelligent technique integrated with fuzzy logic for model testing and validation is then introduced and justified. The innovative model is expected to provide a logical and complete understanding of the risk allocation strategy selection process, and to provide stakeholders with a richer framework than previously existing ones to guide their decision-making on risk allocation strategies.

OWA operators in regression problems

We consider an application of fuzzy logic connectives to statistical regression. We replace the standard least squares, least absolute deviation, and maximum likelihood criteria with an ordered weighted averaging (OWA) function of the residuals. Depending on the choice of the weights, we obtain the standard regression problems, high-breakdown robust methods (least median, least trimmed squares, and trimmed likelihood methods), as well as new formulations. We present various approaches to numerical solution of such regression problems. OWA-based regression is particularly useful in the presence of outliers, and we illustrate the performance of the new methods on several instances of linear regression problems with multiple outliers.

Use of aggregation functions in decision making

A key component of many decision making processes is the aggregation step, whereby a set of numbers is summarised with a single representative value. This research showed that aggregation functions can provide a mathematical formalism to deal with issues like vagueness and uncertainty, which arise naturally in various decision contexts.

OzTug mobile robot for manufacturing transportation

Firstly, this paper introduces the OzTug mobile robot developed to autonomously manoeuvre large loads within a manufacturing environment. The mobile robot utilizes differential drive and necessary design criteria includes low-cost, mechanical robustness, and the ability to manoeuvre loads ranging up to 2000kg. The robot is configured to follow a predefined trajectory while maintaining the forward velocity of a user-specified velocity profile. A vision-based fuzzy logic line following controller enables the robot to track the paths on the floor of the manufacturing environment. Secondly, in order to tow large loads along predefined paths three different robot-load configurations are proposed. Simulation within the Webots environment was performed in order to empirically evaluate the three different robot-load configurations. The simulation results demonstrate the cost-performance trade-off of two of the approaches.

Look-ahead intelligent energy management of a parallel hybrid electric vehicle

Improving fuel efficiency in vehicles can reduce the energy consumption concerns associated with operating the vehicles. This paper presents a model for a parallel hybrid electric vehicle. In the model, the flow of energy starts from wheels and spreads toward engine and electric motor. A fuzzy logic based control strategy is implemented for the vehicle. The controller manages the energy flow from the engine and the electric motor, controlling transmission ratio, adjusting speed, and sustaining battery's state of charge. The controller examines the vehicle speed, demand torque, slope difference, state of charge of battery, and engine and electric motor rotation speeds. It then determines the best values for continuous variable transmission ratio, speed, and torque. A slope window method is formed that takes into account the look-ahead slope information, and determines the best vehicle speed. The developed model and control strategy are simulated using real highway data relating to Nowra-Bateman Bay in Australia, and SAE Highway Fuel Economy Driving Schedule. The simulation results are presented and discussed. It is shown that the use of the proposed fuzzy controller reduces the fuel consumption of the vehicle.

Defining Bonferroni means over lattices

In the face of mass amounts of information and the need for transparent and fair decision processes, aggregation functions are essential for summarizing data and providing overall evaluations. Although families such as weighted means and medians have been well studied, there are still applications for which no existing aggregation functions can capture the decision makers' preferences. Furthermore, extensions of aggregation functions to lattices are often needed to model operations on L-fuzzy sets, interval-valued and intuitionistic fuzzy sets. In such cases, the aggregation properties need to be considered in light of the lattice structure, as otherwise counterintuitive or unreliable behavior may result. The Bonferroni mean has recently received attention in the fuzzy sets and decision making community as it is able to model useful notions such as mandatory requirements. Here, we consider its associated penalty function to extend the generalized Bonferroni mean to lattices. We show that different notions of dissimilarity on lattices can lead to alternative expressions.

Negations generated by bounded lattices t-norms

From the birth of fuzzy sets theory, several extensions have been proposed changing the possible membership values. Since fuzzy connectives such as t-norms and negations have an important role in theoretical as well as applied fuzzy logics, these connectives have been adapted for these generalized frameworks. Perhaps, an extension of fuzzy logic which generalizes the remaining extensions, proposed by Joseph Goguen in 1967, is to consider arbitrary bounded lattices for the values of the membership degrees. In this paper we extend the usual way of constructing fuzzy negations from t-norms for the bounded lattice t-norms and prove some properties of this construction.

(S,N)-implications on bounded lattices

Since the birth of the fuzzy sets theory several extensions have been proposed. For these extensions, different sets of membership functions were considered. Since fuzzy connectives, such as conjunctions, negations and implications, play an important role in the theory and applications of fuzzy logics, these connectives have also been extended. An extension of fuzzy logic, which generalizes the ones considered up to the present, was proposed by Joseph Goguen in 1967. In this extension, the membership values are drawn from arbitrary bounded lattices. The simplest and best studied class of fuzzy implications is the class of (S,N)-implications, and in this chapter we provide an extension of (S,N)-implications in the context of bounded lattice valued fuzzy logic, and we show that several properties of this class are preserved in this more general framework.

A new energy efficient cluster-head and backup selection scheme in WSN

Despite significant advancements in wireless sensor networks (WSNs), energy conservation remains one of the most important research challenges. Proper organization of nodes (clustering) is one of the major techniques to expand the lifespan of the whole network through aggregating data at the cluster head. The cluster head is the backbone of the entire cluster. That means if a cluster head fails to accomplish its function, the received and collected data by cluster head can be lost. Moreover, the energy consumption following direct communications from sources to base stations will be increased. In this paper, we propose a type-2 fuzzy based self-configurable cluster head selection (SCCH) approach to not only consider the selection criterion of the cluster head but also present the cluster backup approach. Thus, in case of cluster failure, the system still works in an efficient way. The novelty of this protocol is the ability of handling communication uncertainty, which is an inherent operational aspect of sensor networks. The experiment results indicate SCCH performs better than other recently developed methods.

Performance analysis of three advanced controllers for polymerization batch reactor: an experimental investigation

The performances of three advanced non-linear controllers are analyzed for the optimal set point tracking of styrene free radical polymerization (FRP) in batch reactors. The three controllers are the artificial neural network-based MPC (NN-MPC), the artificial fuzzy logic controller (FLC) as well as the generic model controller (GMC). A recently developed hybrid model (Hosen et al., 2011a. Asia-Pac. J. Chem. Eng. 6(2), 274) is utilized in the control study to design and tune the proposed controllers. The optimal minimum temperature profiles are determined using the Hamiltonian maximum principle. Different types of disturbances are introduced and applied to examine the stability of controller performance. The experimental studies revealed that the performance of the NN-MPC is superior to that of FLC and GMC. © 2013 The Institution of Chemical Engineers.

On weak monotonicity of some mixture functions

Monotonicity with respect to all arguments is fundamental to the definition of aggregation functions. Here we study means that are not necessarily monotone. Weak monotonicity was recently proposed as a relaxation of the monotonicity condition for averaging functions. We provide results for the weak monotonicity of some importantclasses of mixture functions. With these results we are able to extend and improve the understanding of this very important class of functions.

A review on computational intelligence methods for controlling traffic signal timing

Urban traffic as one of the most important challenges in modern city life needs practically effective and efficient solutions. Artificial intelligence methods have gained popularity for optimal traffic light control. In this paper, a review of most important works in the field of controlling traffic signal timing, in particular studies focusing on Q-learning, neural network, and fuzzy logic system are presented. As per existing literature, the intelligent methods show a higher performance compared to traditional controlling methods. However, a study that compares the performance of different learning methods is not published yet. In this paper, the aforementioned computational intelligence methods and a fixed-time method are implemented to set signals times and minimize total delays for an isolated intersection. These methods are developed and compared on a same platform. The intersection is treated as an intelligent agent that learns to propose an appropriate green time for each phase. The appropriate green time for all the intelligent controllers are estimated based on the received traffic information. A comprehensive comparison is made between the performance of Q-learning, neural network, and fuzzy logic system controller for two different scenarios. The three intelligent learning controllers present close performances with multiple replication orders in two scenarios. On average Q-learning has 66%, neural network 71%, and fuzzy logic has 74% higher performance compared to the fixed-time controller.

A data fusion method in wireless sensor networks

The success of a Wireless Sensor Network (WSN) deployment strongly depends on the quality of service (QoS) it provides regarding issues such as data accuracy, data aggregation delays and network lifetime maximisation. This is especially challenging in data fusion mechanisms, where a small fraction of low quality data in the fusion input may negatively impact the overall fusion result. In this paper, we present a fuzzy-based data fusion approach for WSN with the aim of increasing the QoS whilst reducing the energy consumption of the sensor network. The proposed approach is able to distinguish and aggregate only true values of the collected data as such, thus reducing the burden of processing the entire data at the base station (BS). It is also able to eliminate redundant data and consequently reduce energy consumption thus increasing the network lifetime. We studied the effectiveness of the proposed data fusion approach experimentally and compared it with two baseline approaches in terms of data collection, number of transferred data packets and energy consumption. The results of the experiments show that the proposed approach achieves better results than the baseline approaches.