Adaptive Inference-based Learning and Rule Generation Algorithms in Fuzzy Neural Network for Failure Prediction

Abstract

highly desirable for decision makers and regulators in the finance industry. This study develops a new Failure Prediction (FP) approach which effectively integrates a fuzzy logic-based adaptive inference system with the learning ability of a neural network to generate knowledge in the form of a fuzzy rule base. This FP approach uses a preprocessing phase to deal with the imbalanced data-sets problem and develops a new Fuzzy Neural Network (FNN) including an adaptive inference system in the learning algorithm along with its network structure and rule generation algorithm as a means to reduce prediction error in the FP approach.