Neural and wavelet network models for financial distress classification

This work analyzes the use of linear discriminant models, multi-layer perceptron neural networks and wavelet networks for corporate financial distress prediction. Although simple and easy to interpret, linear models require statistical assumptions that may be unrealistic. Neural networks are able to discriminate patterns that are not linearly separable, but the large number of parameters involved in a neural model often causes generalization problems. Wavelet networks are classification models that implement nonlinear discriminant surfaces as the superposition of dilated and translated versions of a single "mother wavelet" function. In this paper, an algorithm is proposed to select dilation and translation parameters that yield a wavelet network classifier with good parsimony characteristics. The models are compared in a case study involving failed and continuing British firms in the period 1997-2000. Problems associated with over-parameterized neural networks are illustrated and the Optimal Brain Damage pruning technique is employed to obtain a parsimonious neural model. The results, supported by a re-sampling study, show that both neural and wavelet networks may be a valid alternative to classical linear discriminant models.

Smart-phone based electrocardiogram wavelet decomposition and neural network classification

This paper discusses ECG classification after parametrizing the ECG waveforms in the wavelet domain. The aim of the work is to develop an accurate classification algorithm that can be used to diagnose cardiac beat abnormalities detected using a mobile platform such as smart-phones. Continuous time recurrent neural network classifiers are considered for this task. Records from the European ST-T Database are decomposed in the wavelet domain using discrete wavelet transform (DWT) filter banks and the resulting DWT coefficients are filtered and used as inputs for training the neural network classifier. Advantages of the proposed methodology are the reduced memory requirement for the signals which is of relevance to mobile applications as well as an improvement in the ability of the neural network in its generalization ability due to the more parsimonious representation of the signal to its inputs.

Imbalanced functional link between executive control network and reward network explain the online-game seeking behaviors in Internet gaming disorder

Literatures have shown that Internet gaming disorder (IGD) subjects show impaired executive control and enhanced reward sensitivities than healthy controls. However, how these two networks jointly affect the valuation process and drive IGD subjects' online-game-seeking behaviors remains unknown. Thirty-five IGD and 36 healthy controls underwent a resting-states scan in the MRI scanner. Functional connectivity (FC) was examined within control and reward network seeds regions, respectively. Nucleus accumbens (NAcc) was selected as the node to find the interactions between these two networks. IGD subjects show decreased FC in the executive control network and increased FC in the reward network when comparing with the healthy controls. When examining the correlations between the NAcc and the executive control/reward networks, the link between the NAcc - executive control network is negatively related with the link between NAcc - reward network. The changes (decrease/increase) in IGD subjects' brain synchrony in control/reward networks suggest the inefficient/overly processing within neural circuitry underlying these processes. The inverse proportion between control network and reward network in IGD suggest that impairments in executive control lead to inefficient inhibition of enhanced cravings to excessive online game playing. This might shed light on the mechanistic understanding of IGD.

A model of competition and interbank network formation

This work aims to understand the interaction between competition and network formation in the banking market. Combining Matutes and Padilla (1994) and Matutes and Vives (2000), we build a model of imperfect bank competition for deposits in which an interbank relationship network is a key strategic decision: it affects banks’ profit and risk position. The competition level exerts influence in the banking network structure since it affects the network outcomes. As result, we have that different competition levels imply different network topologies. Specifically, greater competition imply denser networks. Finally, when we allow for the possibility of collusion, the denser network can come out in the least competitive environment.

Comparison of logistic and neural network models to fit to the egg production curve of White Leghorn hens

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

Atmospheric Models Applied to DGPS and RTK Network in Brazil: Preliminary Results

Several positioning techniques have been developed to explore the GPS capability to provide precise coordinates in real time. However, a significant problem to all techniques is the ionosphere effect and the troposphere refraction. Recent researches in Brazil, at São Paulo State University (UNESP), have been trying to tackle these problems. In relation to the ionosphere effects it has been developed a model named Mod_Ion. Concerning tropospheric refraction, a model of Numerical Weather Prediction(NWP) has been used to compute the zenithal tropospheric delay (ZTD). These two models have been integrated with two positioning methods: DGPS (Differential GPS) and network RTK (Real Time Kinematic). These two positioning techniques are being investigated at São Paulo State University (UNESP), Brazil. The in-house DGPS software was already finalized and has provided very good results. The network RTK software is still under development. Therefore, only preliminary results from this method using the VRS (Virtual Reference Station) concept are presented.

CENSUS HISTOGRAMS: A SIMPLE FEATURE EXTRACTION and MATCHING APPROACH FOR FACE RECOGNITION

Most face recognition approaches require a prior training where a given distribution of faces is assumed to further predict the identity of test faces. Such an approach may experience difficulty in identifying faces belonging to distributions different from the one provided during the training. A face recognition technique that performs well regardless of training is, therefore, interesting to consider as a basis of more sophisticated methods. In this work, the Census Transform is applied to describe the faces. Based on a scanning window which extracts local histograms of Census Features, we present a method that directly matches face samples. With this simple technique, 97.2% of the faces in the FERET fa/fb test were correctly recognized. Despite being an easy test set, we have found no other approaches in literature regarding straight comparisons of faces with such a performance. Also, a window for further improvement is presented. Among other techniques, we demonstrate how the use of SVMs over the Census Histogram representation can increase the recognition performance.

Identification of lubricant contamination by biodiesel using vibration analysis and neural network

Purpose - The purpose of this paper is to provide information on lubricant contamination by biodiesel using vibration and neural network.Design/methodology/approach - The possible contamination of lubricants is verified by analyzing the vibration and neural network of a bench test under determinated conditions.Findings - Results have shown that classical signal analysis methods could not reveal any correlation between the signal and the presence of contamination, or contamination grade. on other hand, the use of probabilistic neural network (PNN) was very successful in the identification and classification of contamination and its grade.Research limitations/implications - This study was done for some specific kinds of biodiesel. Other types of biodiesel could be analyzed.Practical implications Contamination information is presented in the vibration signal, even if it is not evident by classical vibration analysis. In addition, the use of PNN gives a relatively simple and easy-to-use detection tool with good confidence. The training process is fast, and allows implementation of an adaptive training algorithm.Originality/value - This research could be extended to an internal combustion engine in order to verify a possible contamination by biodiesel.

Predicting body and carcass characteristics of 2 broiler chicken strains using support vector regression and neural network models

As a new modeling method, support vector regression (SVR) has been regarded as the state-of-the-art technique for regression and approximation. In this study, the SVR models had been introduced and developed to predict body and carcass-related characteristics of 2 strains of broiler chicken. To evaluate the prediction ability of SVR models, we compared their performance with that of neural network (NN) models. Evaluation of the prediction accuracy of models was based on the R-2, MS error, and bias. The variables of interest as model output were BW, empty BW, carcass, breast, drumstick, thigh, and wing weight in 2 strains of Ross and Cobb chickens based on intake dietary nutrients, including ME (kcal/bird per week), CP, TSAA, and Lys, all as grams per bird per week. A data set composed of 64 measurements taken from each strain were used for this analysis, where 44 data lines were used for model training, whereas the remaining 20 lines were used to test the created models. The results of this study revealed that it is possible to satisfactorily estimate the BW and carcass parts of the broiler chickens via their dietary nutrient intake. Through statistical criteria used to evaluate the performance of the SVR and NN models, the overall results demonstrate that the discussed models can be effective for accurate prediction of the body and carcass-related characteristics investigated here. However, the SVR method achieved better accuracy and generalization than the NN method. This indicates that the new data mining technique (SVR model) can be used as an alternative modeling tool for NN models. However, further reevaluation of this algorithm in the future is suggested.

Vortex lattice and matching fields for a long superconducting wire

We investigate the flux penetration patterns and matching fields of a long cylindrical wire of circular cross section in the presence of an external magnetic field. For this study we write the London theory for a long cylinder both for the mixed and Meissner states, with boundary conditions appropriate for this geometry. Using the Monte Carlo simulated annealing method, the free energy of the mixed state is minimized with respect to the vortex position and we obtain the ground state of the vortex lattice for N=3 up to 18 vortices. The free energy of the Meissner and mixed states provides expressions for the matching fields. We find that, as in the case of samples of different geometry, the finite-size effect provokes a delay on the vortex penetration and a vortex accumulation in the center of the sample. The vortex patterns obtained are in good agreement with experimental results.

Monitoring in precision metal drilling process using multi-sensors and neural network

This paper presents a new method to estimate hole diameters and surface roughness in precision drilling processes, using coupons taken from a sandwich plate composed of a titanium alloy plate (Ti6Al4V) glued onto an aluminum alloy plate (AA 2024T3). The proposed method uses signals acquired during the cutting process by a multisensor system installed on the machine tool. These signals are mathematically treated and then used as input for an artificial neural network. After training, the neural network system is qualified to estimate the surface roughness and hole diameter based on the signals and cutting process parameters. To evaluate the system, the estimated data were compared with experimental measurements and the errors were calculated. The results proved the efficiency of the proposed method, which yielded very low or even negligible errors of the tolerances used in most industrial drilling processes. This pioneering method opens up a new field of research, showing a promising potential for development and application as an alternative monitoring method for drilling processes. © 2012 Springer-Verlag London Limited.

CLADES y la futura red latinoamericana de información y documentación = CLADES and a future information and documentation network for Latin America

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