A New Method for Forecasting Enrollments based on Fuzzy Time Series with Higher Forecast Accuracy Rate
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1 A New Method for Forecasting based on Fuzzy Time Series with Higher Forecast Accuracy Rate Preetika Saxena Computer Science and Engineering, Medi-caps Institute of Technology & Management, Indore (MP), India Santhosh Easo Computer Science and Engineering, Medi-caps Institute of Technology & Management, Indore (MP), India Abstract The Time-Series models have been used to make predictions in whether forecasting, academic enrollments, etc. Song & Chissom introduced the concept of fuzzy time series in 1993[11]. Over the past 19 years, many fuzzy time series methods have been proposed for forecasting enrollments. These methods mainly focus on 3 factors, namely, the universe of discourse, partition of discourse and the defuzzification method. These methods have either used enrollment numbers or difference of enrollments or percentage change as the universe of discourse. And either used frequency density based portioning or ratio-based portioning as the partition of discourse. For defuzzification process, these methods either used Chen s method or Jilani s method. The main issue in forecasting is in improving accuracy. But the forecasting accuracy rate of the existing methods is not good enough. This paper proposed a method based on fuzzy time series, which gives the higher forecasting accuracy rate than the existing methods. The proposed method used the percentage change as the universe of discourse; mean based partitioning as the partition of discourse and centroid method for defuzzification. To illustrate the forecasting process, the historical enrollment of University of Alabama is used. Keywords- fuzzy set, fuzzy time series, forecasting, forecast error, time variant model, first order model. 1. Introduction Forecasting plays an important role in our day- today life. If there is an uncertainty about the future, decision makers need to forecast. Forecasting is the process of predicting future outcomes, by which decision makers analyze the related data and graphs to decide and take the best decisions for the future. There are different linear and non-linear models, out of which researchers had shown that Neural Networks and Genetic Algorithms are the most powerful non-linear models and fuzzy logic is the most powerful linear model for forecasting of any time series. During last few decades, various approaches have been developed for time series forecasting, but the classical time series methods can not deal with the forecasting problems in which the values of time series are linguistic terms represented by fuzzy sets [5]. To overcome this drawback, Song & Chissom presented the theory of fuzzy time series in 1993[13]. Fuzzy time series model deal with the both linguistic & numerical values. Making decisions is undoubtedly one of the most fundamental and important activities of human beings. We all are faced in our daily life with varieties of alternative actions available to us and we have to decide which of the available actions to take. Forecasting enrollments is of great interest to university administrators who wish to utilize their resources efficiently. It is very important function performed by the university management. Fuzzy forecasting methods have been used to model enrollment data for the University of Alabama ([1] - [9], [11] - [13]), and car fatalities ([14] - [15]). But the forecasting accuracy rates of the existing methods are not good enough. Poor forecasting can lead to disastrous decisions. The aim of this paper is to propose a method that is aimed to attain better forecasting accuracy by using fuzzy time series. For forecast only historical data will be used in numerical form (number of students) without any additional pieces of knowledge. In this paper, a new method is proposed for forecasting enrollments of the University of Alabama based on fuzzy time series with higher forecast accuracy rate. The proposed method used the percentage change as the universe of discourse; mean based partitioning as the partition of discourse and centroid method for 2033
2 defuzzification. In section 2, the basic concepts and definitions of fuzzy time series are given. In section 3, the proposed method is given. In section 4, the comparison of the proposed method with the existing methods is given. Finally the concluding remarks are discussed in section Concept of Fuzzy Time Series Definition 1: Fuzzy Set Fuzzy sets are sets whose elements have degree of membership. Let U be the universe of discourse, U= {u1, u2,, un}, and let A be a fuzzy set in the universe of discourse U defined as follows: A = fa(u1) / u1 + fa(u2) / u2 + + fa(un) / un, Where fa is the membership function of A, fa: U [0, 1], fa(ui) indicates the grade of membership of ui in the fuzzy set A, fa(ui) ϵ [0, 1], and 1 i n, [5]. Definition 2: Time Series A time series is a sequence of data points, measured typically at successive time spaced at uniform time intervals. Definition 3: Fuzzy Time Series Chronological sequences of imprecise data are considered as time series with fuzzy data. A time series with fuzzy data is referred to as fuzzy time series. [7]. Let X(t) (t =, 0, 1, 2, ) be the universe of discourse and be a subset of R, and let fuzzy set fi(t) (i = 1, 2, ) be defined in X(t). Let F(t) be a collection of fi(t) (i=1, 2, ). Then, F(t) is called a fuzzy time series of X(t) (t =, 0, 1, 2, )[5]. Definition 4: Time variant and Timeinvariant fuzzy time series Let F(t) be a fuzzy time series and let R(t, t - 1) be a first-order model of F(t). If R(t, t - 1) = R(t - 1, t - 2) for any time t, then F(t) is called a time-invariant fuzzy time series. If R(t, t - 1) is dependent on time t, that is, R(t, t-1) may be different from R(t - 1, t - 2) for any t, then F(t) is called a time-variant fuzzy time series, [5]. Definition 5: First order model If F(t) is caused by F(t - 1), denoted by F(t - 1) F(t), then this relationship can be represented by F(t) = F(t - 1) R(t, t - 1), where the symbol denotes the Max-Min composition operator; R(t, t 1) is a fuzzy relation between F(t) and F(t - 1) and is called the first-order model of F(t), [5]. Definition 6: Forecast Error A forecast error is the difference between the actual or real and the predicted or forecast value of a time series. Error = Actual value - forecasted value 3. Proposed Method In this section, a new method is proposed for forecasting enrollments of University of Alabama based on fuzzy time series with higher forecast accuracy rate. The proposed method used the percentage change as the universe of discourse; mean based partitioning as the partition of discourse and centroid method for defuzzification. The proposed method based on the following model, which consists of six phases, shown in figure 1. The historical enrollments of the University of Alabama are shown in Table 1 [13]. Figure1. Procedure of the Proposed Method. Table1. The Historical of University of Alabama [13] Year
3 Step 1: Define the universe of discourse U and partition it into intervals of equal length. The percentage change of enrollments from year to year is given in Table 2 and ranges from -5.83% to 7.66%. For example, assume that the universe of discourse U= [-6, 8] is partitioned into seven equal intervals. Table2. The Year- To- Year Percentage Change of Year to Year Change % % % % % % % % % % % % % % % % % % % % % Step 2: Get a mean of the original data. Get the means of frequency of each interval shown in Table 3. Compare the means of original and frequency of each interval and then split the seven intervals into number of sub-intervals respectively. Table3. Means of Original Data and Frequency of Intervals Data Interval Number of Data [-6.0, -4.0] 1 [-4.0, -2.0] 3 [-2.0, 0.0] 1 [0.0, 2.0] 7 [2.0, 4.0] 2 [4.0, 6.0] 6 [6.0, 8.0] 1 Step 3: Define each fuzzy set X i based on the redivided intervals and fuzzify the historical enrollments shown in Table 1, where fuzzy set X i, denotes a linguistic value of the year to year percentage change represented by a fuzzy set. Table4. Fuzzy Intervals Using Mean Based Partitioning Linguistic Interval X 1 [-6.0, -4.0] X 2 [-4.0, -3.33] X 3 [-3.33, -2.66] X 4 [-2.66, -2.00] X 5 [-2.00, 0.00] X 6 [0.00, 0.285] X 7 [0.285, 0.57] X 8 [0.57, 0.855] X 9 [0.855, 1.14] X 10 [1.14, 1.425] X 11 [1.425, 1.71] X 12 [1.71, 2.00] X 13 [2.00, 3.00] X 14 [3.00, 4.00] X 15 [4.00, 4.333] X 16 [4.333, 4.666] X 17 [4.666, 4.999] X 18 [4.999, 5.332] X 19 [5.332, 5.665] X 20 [5.665, 6.00] X 21 [6.00, 8.00] Step 4: Defuzzify the fuzzy data shown in Table 5, using Centroid method. 4. Comparison of Different Forecasting Methods As in [8], we use the average forecasting error rate (AFER) and mean square error (MSE) to compare the forecasting results of different forecasting methods shown in Table 6: AFER = ( Ai Fi / Ai) / n 100% MSE = ( (Ai Fi) 2 ) / n i=1 to n Where A i denotes the actual enrollment and F i denotes the forecasted enrollment of year i, respectively. The MSE and AFER of the proposed method is and 0.31%, respectively. Both measures are lower than the other existing methods. Based on theses result, it can be concluded that the proposed method performs better than the existing methods. 2035
4 Table5. Forecasting Result of the Proposed Method Year Percentage Fuzzy Predicted Forecast A i -F i (A i -F i ) 2 A i -F i /A i (A i ) set Percentage (F i ) % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % % X % MSE = AFER = Table6. Comparison of Different Forecasting Methods Year Song Chissom [12] Chen[1] Hwang Chen Lee[2] Jilani Burney and Ardil [7] Stevenson and Porter [8] Zhao [16] Proposed Method AFER % 3.11% 2.44% 1.02% 0.57% 0.51% 0.31% MSE
5 5. Conclusion This paper proposed a new method to modeling enrollments using year to year percentage change as the universe of discourse with the mean based partitioning. From Table 6, one sees that the proposed method provide the smallest AFER and MSE. Based on this fact, we can conclude that the proposed method achieves a better result. For future work, we will develop new method for forecasting data based on different intervals to get a higher forecasting accuracy. 6. References [1] S. M. Chen, Forecasting enrollments based on fuzzy time series, Fuzzy Sets and Systems, vol. 81, pp , [2] J. R. Hwang, S. M. Chen, C. H. Lee, Handling forecasting problems using fuzzy time series, Fuzzy Sets and Systems, vol. 100, pp , [3] K. Huarng, Effective length of intervals to improve forecasting in fuzzy time series, Fuzzy Sets and systems, vol. 12, pp , [4] S. M. Chen, Forecasting enrollments based on highorder fuzzy time series, Cybernetics and Systems: An International Journal, vol. 33, pp. 1-16, [5] S. M. Chen and Hsu, A new method to forecasting enrollments using fuzzy time series, International Journal of Applied Science and Engineering, vol. 2, no. 3, pp , [6] S. Melike, K.Y. Degtiarev, Forecasting enrollments model based on first- order fuzzy time series, Proceedings of World Academy of Science, Engineering and Technology, vol. 1, pp , [7] T. A. Jilani, S. M. A. Burney, C. Ardil, Fuzzy metric approach for fuzzy time series forecasting based on frequency density based partitioning, Proceedings of World Academy of Science, Engineering and Technology, vol. 34, pp , [8] Stevenson, Porter, Fuzzy time series forecasting using percentage change as the universe of discourse, Proceedings of World Academy of Science, Engineering and Technology, vol. 55, pp , [9] Z. Ismail, R. Efendi, Enrollment forecasting based on modified weight fuzzy time series, Journal of Artificial Intelligence, vol. 4(1), pp , [10] Arutehelvan G., Sivatsa S. K, Jaganathan R., Inaccuracy minimization by partitioning fuzzy data sets- validation of an analytical methodology, (IJCSIS) International Journal of Computer Science and Information Security, vol. 8, no. 1, [11] Q. Song, B. S. Chissom, Fuzzy time series and its models, Fuzzy Sets and systems, vol. 54, pp , [12] Q. Song, B. S. Chissom, Forecasting enrollments with fuzzy time series: Part I, Fuzzy Sets and systems, vol. 54, pp. 1-9, [13] Q. Song, B. S. Chissom, Forecasting enrollments with fuzzy time series: Part II, Fuzzy Sets and systems, vol. 62: pp. 1-8, [14] T. A. Jilani, S. M. A. Burney, M-factor high order fuzzy time series forecasting for road accident data, In IEEE-IFSA 2007, World Congress, Cancun, Mexico, June 18-21, Forthcoming in Book series Advances in Soft Computing, Springer-Verlag, [15] T. A. Jilani, S. M. A. Burney, C. Ardil, Multivariate high order fuzzy time series forecasting for car road accidents, International Journal of Computational Intelligence, vol. 4, no. 1, pp , [16] L. Zhao, A new method to predict enrollments based on fuzzy time series, World Congress on Intelligent Control and Automation- IEEE, Jinan, China, pp ,
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