Three-way Investment Decisions with Decision-theoretic Rough Sets

DOI

10.2991/ijcis.2011.4.1.6How to use a DOI?

Keywords

Keywords: Decision-theoretic rough sets, probabilistic rough sets, three-way decisions, investment decisions

Abstract

The decision-theoretic rough set model is adopted to derive a profit-based three-way approach to investment decision-making. A three-way decision is made based on a pair of thresholds on conditional probabilities. A positive rule makes a decision of investment, a negative rule makes a decision of noninvestment, and a boundary rule makes a decision of deferment. Both cost functions and revenue functions are used to calculate the required two thresholds by maximizing conditional profit with the Bayesian decision procedure. A case study of oil investment demonstrates the proposed method.

Copyright

© 2010, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - JOUR
AU  - D. Liu
AU  - Y.Y. Yao
AU  - T.R. Li
PY  - 2011
DA  - 2011/02/01
TI  - Three-way Investment Decisions with Decision-theoretic Rough Sets
JO  - International Journal of Computational Intelligence Systems
SP  - 66
EP  - 74
VL  - 4
IS  - 1
SN  - 1875-6883
UR  - https://doi.org/10.2991/ijcis.2011.4.1.6
DO  - 10.2991/ijcis.2011.4.1.6
ID  - Liu2011
ER  -