Application of genetic algorithm and neural network in forecasting with good data

  • Authors:
  • P. Makvandi;J. Jassbi;S. Khanmohammadi

  • Affiliations:
  • System Department, I.A. University, Tehran, Iran;System Department, I.A. University, Tehran, Iran;System Department, I.A. University, Tehran, Iran

  • Venue:
  • NN'05 Proceedings of the 6th WSEAS international conference on Neural networks
  • Year:
  • 2005

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Abstract

Selection of effective input variables on decision making or forecasting problems, is one of the most important dilemmas in forecasting and decision making field. Due to research and problem constraints, we can not use all of known variables for forecasting or decision making in real world applications. Thus, in decision making problems or system simulations, we are trying to select important and effective variables as good data. In this paper we use a hybrid model of Genetic Algorithm (GA) and Artificial Neural Network (ANN) to determine and select effective variables on forecasting and decision making process. In this model we have used genetic algorithm to code the combination of effective variables and neural network as a fitness function of genetic algorithm. The introduced model is applied in a case study to determine effective variables on forecasting future dividend of the firms that are members of Tehran stock exchange. This model can be used in different fields such as financial forecasting, market variables prediction, intelligent robots decision making, DSS structures, etc.