Building a financial diagnosis system based on fuzzy logic production system

Abstract

The purpose of this study is to build a financial expert system based on fuzzy theory and Fuzzy LOgic Production System (FLOPS), which is an expert tool for processing the ambiguity. The study consists if four parts. For the first part, the basic features of expert systems are presented. For the second part, fizzy concepts and the evaluation of classical expert systems to fuzzy expert systems will be presented. For the third part, the expert system shell (FLOPS) used in this study will be described. For the last part, it will be presented the financial diagnosis system, developed by using the Wall's seven ratios, traditional seven ratios and also 34 ratios selected by a financial expert. After analyzing and investigating these three kinds of methods, financial diagnosis system will be developed as a fuzzy expen system which used a membership function based on averages and standard deviation. At the last step, the new approach will be tried by increasing the fuzzy sets for five membership functions. Some practical examples will be given. Throughout the paper, the way of building a financial diagnosis system based on fuzzy expert system is stressed.