Fuzzy analysis: a vague way of dealing with uncertainty in real estate analysis?

Risk and uncertainty are, to say the least, poorly considered by most individuals involved in real estate analysis - in both development and investment appraisal. Surveyors continue to express 'uncertainty' about the value (risk) of using relatively objective methods of analysis to account for these factors. These methods attempt to identify the risk elements more explicitly. Conventionally this is done by deriving probability distributions for the uncontrolled variables in the system. A suggested 'new' way of "being able to express our uncertainty or slight vagueness about some of the qualitative judgements and not entirely certain data required in the course of the problem..." uses the application of fuzzy logic. This paper discusses and demonstrates the terminology and methodology of fuzzy analysis. In particular it attempts a comparison of the procedures with those used in 'conventional' risk analysis approaches and critically investigates whether a fuzzy approach offers an alternative to the use of probability based analysis for dealing with aspects of risk and uncertainty in real estate analysis

Data-driven fuzzy analysis in quantitative mineral resource assessment

The integration of geo-information from multiple sources and of diverse nature in developing mineral favourability indexes (MFIs) is a well-known problem in mineral exploration and mineral resource assessment. Fuzzy set theory provides a convenient framework to combine and analyse qualitative and quantitative data independently of their source or characteristics. A novel, data-driven formulation for calculating MFIs based on fuzzy analysis is developed in this paper. Different geo-variables are considered fuzzy sets and their appropriate membership functions are defined and modelled. A new weighted average-type aggregation operator is then introduced to generate a new fuzzy set representing mineral favourability. The membership grades of the new fuzzy set are considered as the MFI. The weights for the aggregation operation combine the individual membership functions of the geo-variables, and are derived using information from training areas and L, regression. The technique is demonstrated in a case study of skarn tin deposits and is used to integrate geological, geochemical and magnetic data. The study area covers a total of 22.5 km(2) and is divided into 349 cells, which include nine control cells. Nine geo-variables are considered in this study. Depending on the nature of the various geo-variables, four different types of membership functions are used to model the fuzzy membership of the geo-variables involved. (C) 2002 Elsevier Science Ltd. All rights reserved.

Evaluation of deterministic and complex analytical hierarchy process methods for agricultural land suitability analysis in a changing climate

Land suitability analysis is employed to evaluate the appropriateness of land for a particular purpose whilst integrating both qualitative and quantitative inputs, which can be continuous in nature. However, in agricultural modelling there is often a disregard of this contiguous aspect. Therefore, some parametric procedures for suitability analysis compartmentalise units into defined membership classes. This imposition of crisp boundaries neglects the continuous formations found throughout nature and overlooks differences and inherent uncertainties found in the modelling. This research will compare two approaches to suitability analysis over three differing methods. The primary approach will use an Analytical Hierarchy Process (AHP), while the other approach will use a Fuzzy AHP over two methods; Fitted Fuzzy AHP and Nested Fuzzy AHP. Secondary to this, each method will be assessed into how it behaves in a climate change scenario to understand and highlight the role of uncertainties in model conceptualisation and structure. Outputs and comparisons between each method, in relation to area, proportion of membership classes and spatial representation, showed that fuzzy modelling techniques detailed a more robust and continuous output. In particular the Nested Fuzzy AHP was concluded to be more pertinent, as it incorporated complex modelling techniques, as well as the initial AHP framework. Through this comparison and assessment of model behaviour, an evaluation of each methods predictive capacity and relevance for decision-making purposes in agricultural applications is gained.

Fuzzy methods for analysis of microarrays and networks

Bioinformatics involves analyses of biological data such as DNA sequences, microarrays and protein-protein interaction (PPI) networks. Its two main objectives are the identification of genes or proteins and the prediction of their functions. Biological data often contain uncertain and imprecise information. Fuzzy theory provides useful tools to deal with this type of information, hence has played an important role in analyses of biological data. In this thesis, we aim to develop some new fuzzy techniques and apply them on DNA microarrays and PPI networks. We will focus on three problems: (1) clustering of microarrays; (2) identification of disease-associated genes in microarrays; and (3) identification of protein complexes in PPI networks. The first part of the thesis aims to detect, by the fuzzy C-means (FCM) method, clustering structures in DNA microarrays corrupted by noise. Because of the presence of noise, some clustering structures found in random data may not have any biological significance. In this part, we propose to combine the FCM with the empirical mode decomposition (EMD) for clustering microarray data. The purpose of EMD is to reduce, preferably to remove, the effect of noise, resulting in what is known as denoised data. We call this method the fuzzy C-means method with empirical mode decomposition (FCM-EMD). We applied this method on yeast and serum microarrays, and the silhouette values are used for assessment of the quality of clustering. The results indicate that the clustering structures of denoised data are more reasonable, implying that genes have tighter association with their clusters. Furthermore we found that the estimation of the fuzzy parameter m, which is a difficult step, can be avoided to some extent by analysing denoised microarray data. The second part aims to identify disease-associated genes from DNA microarray data which are generated under different conditions, e.g., patients and normal people. We developed a type-2 fuzzy membership (FM) function for identification of diseaseassociated genes. This approach is applied to diabetes and lung cancer data, and a comparison with the original FM test was carried out. Among the ten best-ranked genes of diabetes identified by the type-2 FM test, seven genes have been confirmed as diabetes-associated genes according to gene description information in Gene Bank and the published literature. An additional gene is further identified. Among the ten best-ranked genes identified in lung cancer data, seven are confirmed that they are associated with lung cancer or its treatment. The type-2 FM-d values are significantly different, which makes the identifications more convincing than the original FM test. The third part of the thesis aims to identify protein complexes in large interaction networks. Identification of protein complexes is crucial to understand the principles of cellular organisation and to predict protein functions. In this part, we proposed a novel method which combines the fuzzy clustering method and interaction probability to identify the overlapping and non-overlapping community structures in PPI networks, then to detect protein complexes in these sub-networks. Our method is based on both the fuzzy relation model and the graph model. We applied the method on several PPI networks and compared with a popular protein complex identification method, the clique percolation method. For the same data, we detected more protein complexes. We also applied our method on two social networks. The results showed our method works well for detecting sub-networks and give a reasonable understanding of these communities.

Classification of Indian meteorological stations using cluster and fuzzy cluster analysis, and Kohonen artificial neural networks

The present study deals with the application of cluster analysis, Fuzzy Cluster Analysis (FCA) and Kohonen Artificial Neural Networks (KANN) methods for classification of 159 meteorological stations in India into meteorologically homogeneous groups. Eight parameters, namely latitude, longitude, elevation, average temperature, humidity, wind speed, sunshine hours and solar radiation, are considered as the classification criteria for grouping. The optimal number of groups is determined as 14 based on the Davies-Bouldin index approach. It is observed that the FCA approach performed better than the other two methodologies for the present study.

Two-dimensional fuzzy fault tree analysis for chlorine release from a chlor-alkali industry using expert elicitation

The hazards associated with major accident hazard (MAN) industries are fire, explosion and toxic gas releases. Of these, toxic gas release is the worst as it has the potential to cause extensive fatalities. Qualitative and quantitative hazard analyses are essential for the identification and quantification of these hazards related to chemical industries. Fault tree analysis (FTA) is an established technique in hazard identification. This technique has the advantage of being both qualitative and quantitative, if the probabilities and frequencies of the basic events are known. This paper outlines the estimation of the probability of release of chlorine from storage and filling facility of chlor-alkali industry using FTA. An attempt has also been made to arrive at the probability of chlorine release using expert elicitation and proven fuzzy logic technique for Indian conditions. Sensitivity analysis has been done to evaluate the percentage contribution of each basic event that could lead to chlorine release. Two-dimensional fuzzy fault tree analysis (TDFFTA) has been proposed for balancing the hesitation factor involved in expert elicitation. (C) 2010 Elsevier B.V. All rights reserved.

Fuzzy data envelopment analysis for performance evaluation of an irrigation system

Sixteen irrigation subsystems of the Mahi Bajaj Sagar Project, Rajasthan, India, are evaluated and selection of the most suitable/best is made using data envelopment analysis (DEA) in both deterministic and fuzzy environments. Seven performance-related indicators, namely, land development works (LDW), timely supply of inputs (TSI), conjunctive use of water resources (CUW), participation of farmers (PF), environmental conservation (EC), economic impact (EI) and crop productivity (CPR) are considered. Of the seven, LDW, TSI, CUW, PF and EC are considered inputs, whereas CPR and EI are considered outputs for DEA modelling purposes. Spearman rank correlation coefficient values are also computed for various scenarios. It is concluded that DEA in both deterministic and fuzzy environments is useful for the present problem. However, the outcome of fuzzy DEA may be explored for further analysis due to its simple, effective data and discrimination handling procedure. It is inferred that the present study can be explored for similar situations with suitable modifications.

Regional flood frequency analysis using kernel- based fuzzy clustering approach

Regionalization approaches are widely used in water resources engineering to identify hydrologically homogeneous groups of watersheds that are referred to as regions. Pooled information from sites (depicting watersheds) in a region forms the basis to estimate quantiles associated with hydrological extreme events at ungauged/sparsely gauged sites in the region. Conventional regionalization approaches can be effective when watersheds (data points) corresponding to different regions can be separated using straight lines or linear planes in the space of watershed related attributes. In this paper, a kernel-based Fuzzy c-means (KFCM) clustering approach is presented for use in situations where such linear separation of regions cannot be accomplished. The approach uses kernel-based functions to map the data points from the attribute space to a higher-dimensional space where they can be separated into regions by linear planes. A procedure to determine optimal number of regions with the KFCM approach is suggested. Further, formulations to estimate flood quantiles at ungauged sites with the approach are developed. Effectiveness of the approach is demonstrated through Monte-Carlo simulation experiments and a case study on watersheds in United States. Comparison of results with those based on conventional Fuzzy c-means clustering, Region-of-influence approach and a prior study indicate that KFCM approach outperforms the other approaches in forming regions that are closer to being statistically homogeneous and in estimating flood quantiles at ungauged sites. Key Points Kernel-based regionalization approach is presented for flood frequency analysis Kernel procedure to estimate flood quantiles at ungauged sites is developed A set of fuzzy regions is delineated in Ohio, USA

Analytical approach to quantile estimation in regional frequency analysis based on fuzzy framework

Regional frequency analysis is widely used for estimating quantiles of hydrological extreme events at sparsely gauged/ungauged target sites in river basins. It involves identification of a region (group of watersheds) resembling watershed of the target site, and use of information pooled from the region to estimate quantile for the target site. In the analysis, watershed of the target site is assumed to completely resemble watersheds in the identified region in terms of mechanism underlying generation of extreme event. In reality, it is rare to find watersheds that completely resemble each other. Fuzzy clustering approach can account for partial resemblance of watersheds and yield region(s) for the target site. Formation of regions and quantile estimation requires discerning information from fuzzy-membership matrix obtained based on the approach. Practitioners often defuzzify the matrix to form disjoint clusters (regions) and use them as the basis for quantile estimation. The defuzzification approach (DFA) results in loss of information discerned on partial resemblance of watersheds. The lost information cannot be utilized in quantile estimation, owing to which the estimates could have significant error. To avert the loss of information, a threshold strategy (TS) was considered in some prior studies. In this study, it is analytically shown that the strategy results in under-prediction of quantiles. To address this, a mathematical approach is proposed in this study and its effectiveness in estimating flood quantiles relative to DFA and TS is demonstrated through Monte-Carlo simulation experiments and case study on Mid-Atlantic water resources region, USA. (C) 2015 Elsevier B.V. All rights reserved.

Delineation of homogeneous hydrometeorological regions using wavelet-based global fuzzy cluster analysis

Identification of homogeneous hydrometeorological regions (HMRs) is necessary for various applications. Such regions are delineated by various approaches considering rainfall and temperature as two key variables. In conventional approaches, formation of regions is based on principal components (PCs)/statistics/indices determined from time series of the key variables at monthly and seasonal scales. An issue with use of PCs for regionalization is that they have to be extracted from contemporaneous records of hydrometeorological variables. Therefore, delineated regions may not be effective when the available records are limited over contemporaneous time period. A drawback associated with the use of statistics/indices is that they do not provide effective representation of the key variables when the records exhibit non-stationarity. Consequently, the resulting regions may not be effective for the desired purpose. To address these issues, a new approach is proposed in this article. The approach considers information extracted from wavelet transformations of the observed multivariate hydrometeorological time series as the basis for regionalization by global fuzzy c-means clustering procedure. The approach can account for dynamic variability in the time series and its non-stationarity (if any). Effectiveness of the proposed approach in forming HMRs is demonstrated by application to India, as there are no prior attempts to form such regions over the country. Drought severity-area-frequency (SAF) curves are constructed corresponding to each of the newly formed regions for the use in regional drought analysis, by considering standardized precipitation evapotranspiration index (SPEI) as the drought indicator.

Prediction of marine sediment corrosion by fuzzy clustering analysis

Along with the development of marine industries, especially marine petroleum exploitation, more and more pipelines are buried in the marine sediment. It is necessary and useful to know the corrosion environment and corrosiveness of marine sediment. In this paper, field corrosion environmental factors were investigated in Liaodong Bay marine sediment containing sulfate-reducing bacteria (SRB) and corrosion rate of steel in the partly sediment specimens were determined by the transplanting burying method. Based on the data, the fuzzy clustering analysis (FCA) was applied to evaluate and predict the corrosiveness of marine sediment. On that basis, the influence factors of corrosion damage were discussed.