A PROMETHEE-based classification method using concordance and discordance relations and its application to bankruptcy prediction

Hu, Yi‐Chung; Chen, Chiung-Jung

doi:10.1016/j.ins.2011.06.021

Cited by 51 publications

(18 citation statements)

References 21 publications

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“…The higher is Pj(xi,xk), the stronger is the preference for xi over xk. Six different criteria (e.g., usual criterion, quasi criterion, level criterion) are usually taken into account [12][13] and usual criterion is adopted in this paper. Fig.…”

Section: A Building Preference Functionmentioning

confidence: 99%

Coal suppliers evaluation model based on AHP and PROMETHEE

Dong¹

2015

Advances in Social Science, Education and Humanities Research

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Abstract:The coal suppliers evaluation and selection is significant for thermal power plants to reduce the cost of power generation and enhance market competitiveness. After analyzing the limitations of the existing multiple criteria decision methods, a method for coal suppliers selection is developed by integrating analytic hierarchy process (AHP) and preference ranking organization methods for enrichment evaluations (PROMETHEE). In the process of actual evaluation, satisfaction of alternatives is the same but index value of various alternatives is different. In order to solve this problem the paper puts forward a data preprocessing method. AHP is used to analyze the structure of coal supplier selection and determine weights for evaluation criteria, and PROMETHEE is used for final raking. Finally, a numerical example is given to illustrate the efficiency of the proposed model.

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Section: A Building Preference Functionmentioning

confidence: 99%

Coal suppliers evaluation model based on AHP and PROMETHEE

Dong¹

2015

Advances in Social Science, Education and Humanities Research

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“…Based on the review carried out, several comments can be outlined: (i) the use of statistical procedures either for determining the optimal method or for comparing the performance of different prediction models appears to be infrequent since more than 68% of papers have not reported any form of hypothesis testing; (ii) the parametric tests have been applied in nearly 18% of papers (especially the t-test with about 15%), but ignoring whether the samples hold the normality and homoscedasticity assumptions or not; (iii) approximately 13% of papers have included a non-parametric test in the experimental protocol, being the McNemar's (5.67%) and Wilcoxon's signed-ranks (3.55%) tests the two most common techniques; (iv) only three papers (Canbas et al 2005;Abdou et al 2008;Abdou 2009a) have studied the statistical difference of variances through Bartlett's, Levene's or Cochran's C tests; and (v) the post hoc tests for comparisons with a control algorithm have seldom been applied, with only seven works using the Tukey's method (Pendharkar 2005), the Nemenyi's test (García et al 2012;Marqués et al 2013;Brown and Mues 2012), the Holm's test (Hu and Chen 2011) or the Bonferroni-Dunn's procedure (Marqués et al 2012a,b).…”

Section: Statistical Tests Of Significancementioning

confidence: 99%

An insight into the experimental design for credit risk and corporate bankruptcy prediction systems

2014

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Over the last years, it has been observed an increasing interest of the finance and business communities in any application tool related to the prediction of credit and bankruptcy risk, probably due to the need of more robust decision-making systems capable of managing and analyzing complex data. As a result, plentiful techniques have been developed with the aim of producing accurate prediction models that are able to tackle these issues. However, the design of experiments to assess and compare these models has attracted little attention so far, even though it plays an important role in validating and supporting the theoretical evidence of performance. The experimental design should be done carefully for the results to hold significance; otherwise, it might be a potential source of misleading and contradictory conclusions about the benefits of using a particular prediction system. In this work, we review more than 140 papers published in refereed journals within the period 2000-2013, putting the emphasis on the bases of the experimental design in credit scoring and bankruptcy prediction applications. We provide some caveats and guidelines for the usage of databases, data splitting methods, performance evaluation metrics and hypothesis testing procedures in order to converge on a systematic, consistent validation standard.

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“…The Gaussian criterion only requires establishing σ , which is facilitated through experience with normal distributions in statistics. The parameter σ can be directly identified with the standard deviation of a normal distribution (Brans et al 1986) or can be determined by the decision maker (Hu and Chen 2011). Note that the condition σ = 0 must hold in this case.…”

Section: Type Iii: Inclusion-based V-shaped Criterionmentioning

confidence: 99%

IVIF-PROMETHEE outranking methods for multiple criteria decision analysis based on interval-valued intuitionistic fuzzy sets

Chen

2014

Fuzzy Optim Decis Making

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This paper attempts to develop an interval-valued intuitionistic fuzzy preference ranking organization method for enrichment evaluations (IVIF-PROMETHEE) and attempts to apply it to multiple criteria decision analysis. The theory of intervalvalued intuitionistic fuzzy sets is useful for modeling impressions and quantifying the ambiguous nature of subjective judgments in a convenient manner. PROMETHEE is a well-known and widely used outranking method, but it has not been investigated in depth within the interval-valued intuitionistic fuzzy environment. Based on the concepts of inclusion comparison possibilities, this paper proposes inclusion-based generalized criteria to determine preference functions and global preference indices for acquiring leaving flows, entering flows, and net flows of alternative actions. Using the score functions and accuracy functions of the flows, this paper develops IVIF-PROMETHEE I and IVIF-PROMETHEE II, which are methods for the partial ranking and complete ranking, respectively, of alternatives. The feasibility and applicability of the proposed methods are illustrated through a problem on the selection of bridge construction methods. Finally, a comparative discussion of other decision-making methods is conducted to demonstrate the advantages of the proposed IVIF-PROMETHEE methods.

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A PROMETHEE-based classification method using concordance and discordance relations and its application to bankruptcy prediction

Cited by 51 publications

References 21 publications

Coal suppliers evaluation model based on AHP and PROMETHEE

Coal suppliers evaluation model based on AHP and PROMETHEE

An insight into the experimental design for credit risk and corporate bankruptcy prediction systems

IVIF-PROMETHEE outranking methods for multiple criteria decision analysis based on interval-valued intuitionistic fuzzy sets

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