Heraclitus : a LFSR-based stream cipher with key dependent structure

We describe Heraclitus as an example of a stream cipher that uses a 128 bit index string to specify the structure of each instance in real time: each instance of Heraclitus will be a stream cipher based on mutually clocked shift registers. Ciphers with key-dependent structures have been investigated and are generally based on Feistel networks. Heraclitus, however, is based on mutually clocked shift registers. Ciphers of this type have been extensively analysed, and published attacks on them will be infeasible against any instance of Heraclitus. The speed and security of Heraclitus makes it suitable as a session cipher, that is, an instance is generated at key exchange and used for one session.

Data mining techniques for the assessment of factors contributing to the damage of residential houses in Australia

This paper reports on the preparation and management processes of inconsistent data on damage on residential houses in Victoria, Australia. There are no existing specific and fully relevant databases readily available except for the incomplete paper-based and electronic-based reports. Therefore, the extracting of information from the reports is complicated and time consuming in order to extract and include all the necessary information needed for analysis of damage on residential houses founded on expansive soils. Data mining is adopted to develop a database. Statistical methods and Artificial Intelligence methods are used to quantify the quality of data. The paper concludes that the development of such database could enable BHC to evaluate the usefulness of the reports prepared on the reported damage properties for further analysis.

An examination of Australian gold mining firms' exposure over the collapse of gold price in the late 1990s

Purpose – The purpose of this study is to examine the exposures of Australian gold mining firms in the highly volatile period from 1995 to 2000. This period has been characterized by significant changes in gold price due to bulk sale of gold by collective central banks. Specifically, the paper aims to investigate several firm-specific factors that are hypothesized to carry substantial influence on gold beta.

Design/methodology/approach – To estimate gold beta, we use the following multifactor model: R_g,_t = a+ß_gGPR_t + ß_xFXR_t + ß_mR_m,_t + _Et , where R_g,_t is the return on the gold stock Index at time t, GPR_t is the gold price return denominated in US dollar at time t, FXR_t is the foreign exchange return of Australian dollar in terms of US dollar at time t, R_m,t is the market return at time t, and _Et is the random error term at time t.

Findings – The paper finds that the values of gold beta are consistently greater than one, implying the sensitive nature of firms’ stock returns to gold price changes. This also suggests that investors holding gold mining stock would receive higher percentage increases in stock returns from a percentage increase in gold price returns, as opposed to investors holding gold bullion. Furthermore, these values have changed substantially over time with significant changes in gold price volatility. The most important and consistent relationship that we find is the impact of firms’ hedging behavior on their respective gold betas. This is consistent with Tufano’s study. It implies that firms, which hedge a greater proportion of their gold reserves, are less sensitive to movements in gold prices. The finding therefore supports the risk management theory that hedging increases shareholder’s wealth. However, cash operating costs, cash reserves and the level of gold production seem to influence very little on the firms’ exposure to gold price changes.

Originality/value – This study is of interest and important to the stock mining companies and investors because the extent of the effect of gold price movements on the stock returns of gold mining companies has significant impacts on returns for both firms and investors especially in their risk management and investment decisions, respectively.

Fast mining of non-derivable episode rules in complex sequences

Researchers have been endeavoring to discover concise sets of episode rules instead of complete sets in sequences. Existing approaches, however, are not able to process complex sequences and can not guarantee the accuracy of resulting sets due to the violation of anti-monotonicity of the frequency metric. In some real applications, episode rules need to be extracted from complex sequences in which multiple items may appear in a time slot. This paper investigates the discovery of concise episode rules in complex sequences. We define a concise representation called non-derivable episode rules and formularize the mining problem. Adopting a novel anti-monotonic frequency metric, we then develop a fast approach to discover non-derivable episode rules in complex sequences. Experimental results demonstrate that the utility of the proposed approach substantially reduces the number of rules and achieves fast processing.

Improving reliability of unbalanced text mining by reducing performance bias

Class imbalance in textual data is one important factor that affects the reliability of text mining. For imbalanced textual data, conventional classifiers tend to have a strong performance bias, which results in high accuracy rate on the majority class but very low rate on the minorities. An extreme strategy for unbalanced learning is to discard the majority instances and apply one-class classification to the minority class. However, this could easily cause another type of bias, which increases the accuracy rate on minorities by sacrificing the majorities. This chapter aims to investigate approaches that reduce these two types of performance bias and improve the reliability of discovered classification rules. Experimental results show that the inexact field learning method and parameter optimized one class classifiers achieve more balanced performance than the standard approaches.

Semantic trajectory based event detection and event pattern mining

Video event detection is an effective way to automatically understand the semantic content of the video. However, due to the mismatch between low-level visual features and high-level semantics, the research of video event detection encounters a number of challenges, such as how to extract the suitable information from video, how to represent the event, how to build up reasoning mechanism to infer the event according to video information. In this paper, we propose a novel event detection method. The method detects the video event based on the semantic trajectory, which is a high-level semantic description of the moving object’s trajectory in the video. The proposed method consists of three phases to transform low-level visual features to middle-level raw trajectory information and then to high-level semantic trajectory information. Event reasoning is then carried out with the assistance of semantic trajectory information and background knowledge. Additionally, to release the users’ burden in manual event definition, a method is further proposed to automatically discover the event-related semantic trajectory pattern from the sample semantic trajectories. Furthermore, in order to effectively use the discovered semantic trajectory patterns, the associative classification-based event detection framework is adopted to discover the possibly occurred event. Empirical studies show our methods can effectively and efficiently detect video events.

Effective anomaly detection in sensor networks data streams

This paper addresses a major challenge in data mining applications where the full information about the underlying processes, such as sensor networks or large online database, cannot be practically obtained due to physical limitations such as low bandwidth or memory, storage, or computing power. Motivated by the recent theory on direct information sampling called compressed sensing (CS), we propose a framework for detecting anomalies from these largescale data mining applications where the full information is not practically possible to obtain. Exploiting the fact that the intrinsic dimension of the data in these applications are typically small relative to the raw dimension and the fact that compressed sensing is capable of capturing most information with few measurements, our work show that spectral methods that used for volume anomaly detection can be directly applied to the CS data with guarantee on performance. Our theoretical contributions are supported by extensive experimental results on large datasets which show satisfactory performance.

Mining condensed sets of frequent episodes with more accurate frequencies from complex sequences

Many previous approaches to frequent episode discovery only accept simple sequences. Although a recent approach has been able to nd frequent episodes from complex sequences, the discovered sets are neither condensed nor accurate. This paper investigates the discovery of condensed sets of frequent episodes from complex sequences. We adopt a novel anti-monotonic frequency measure based on non-redundant occurrences, and dene a condensed set, nDaCF (the set of non-derivable approximately closed frequent episodes) within a given maximal error bound of support. We then introduce a series of effective pruning strategies, and develop a method, nDaCF-Miner, for discovering nDaCF sets. Experimental results show that, when the error bound is somewhat high, the discovered nDaCF sets are two orders of magnitude smaller than complete sets, and nDaCF-miner is more efficient than previous mining approaches. In addition, the nDaCF sets are more accurate than the sets found by previous approaches.