• The Journal of Information Systems
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• v.26 no.3
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• pp.63-90
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• 2017

Purpose This study proposes a novel system trading model using case-based reasoning (CBR) based on absolute similarity threshold. The proposed model is designed to optimize the absolute similarity threshold, feature selection, and instance selection of CBR by using genetic algorithm (GA). With these mechanisms, it enables us to yield higher returns from stock market trading. Design/Methodology/Approach The proposed CBR model uses the absolute similarity threshold varying from 0 to 1, which serves as a criterion for selecting appropriate neighbors in the nearest neighbor (NN) algorithm. Since it determines the nearest neighbors on an absolute basis, it fails to select the appropriate neighbors from time to time. In system trading, it is interpreted as the signal of 'hold'. That is, the system trading model proposed in this study makes trading decisions such as 'buy' or 'sell' only if the model produces a clear signal for stock market prediction. Also, in order to improve the prediction accuracy and the rate of return, the proposed model adopts optimal feature selection and instance selection, which are known to be very effective in enhancing the performance of CBR. To validate the usefulness of the proposed model, we applied it to the index trading of KOSPI200 from 2009 to 2016. Findings Experimental results showed that the proposed model with optimal feature or instance selection could yield higher returns compared to the benchmark as well as the various comparison models (including logistic regression, multiple discriminant analysis, artificial neural network, support vector machine, and traditional CBR). In particular, the proposed model with optimal instance selection showed the best rate of return among all the models. This implies that the application of CBR with the absolute similarity threshold as well as the optimal instance selection may be effective in system trading from the perspective of returns.

• KIPS Transactions on Software and Data Engineering
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• v.2 no.8
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• pp.535-542
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• 2013

Since case-based reasoning(CBR) has many advantages, it has been used for supporting decision making in various areas including medical checkup, production planning, customer classification, and so on. However, there are several factors to be set by heuristics when designing effective CBR systems. Among these factors, this study addresses the issue of selecting appropriate neighbors in case retrieval step. As the criterion for selecting appropriate neighbors, conventional studies have used the preset number of neighbors to combine(i.e. k of k-nearest neighbor), or the relative portion of the maximum similarity. However, this study proposes to use the absolute similarity threshold varying from 0 to 1, as the criterion for selecting appropriate neighbors to combine. In this case, too small similarity threshold value may make the model rarely produce the solution. To avoid this, we propose to adopt the coverage, which implies the ratio of the cases in which solutions are produced over the total number of the training cases, and to set it as the constraint when optimizing the similarity threshold. To validate the usefulness of the proposed model, we applied it to a real-world target marketing case of an online shopping mall in Korea. As a result, we found that the proposed model might significantly improve the performance of CBR.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.28 no.4C
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• pp.397-405
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• 2003

In this paper, we propose an efficient motion estimation algorithm which can reduce computational complexity by using characteristics of wavelet coefficient in each subband while keeping about the same image quality as in using MRME(multiresolution motion estimation). In general, because of the high similarity between consecutive frames, we first decide whether the motion exists or not by just comparing MAD(mean absolute difference) between blocks with threshold in the lowest subbands of consecutive two frames. If it turns out that there is no motion in the lowest subband, we can also decide no motion exists in the higher subband. This is due to the characteristics of wavelet transform. Conversely, if we find any motion in the lowest subband, we can reduce computational complexity by estimating high subband motion vectors selectively according to the amount of computational complexity by estimating high subband motion vectors selectively according to the amount of energy in that subband. Experimental results are shown that algorithm suggested in this paper maintains about the same PSNR as MRME. However, the processing time was reduced about 30-50% compared with the MRME.

• Proceedings of the Korea Information Processing Society Conference
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• 2008.11a
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• pp.714-717
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• 2008

협업여과 추천기법에는 사용자 기반 협업여과와 아이템 기반 협업여과가 있으며, 절차는 유사도 측정, 이웃 선정, 예측값 생성 단계로 이루어진다. 유사도 측정 단계에는 유클리드 거리(Euclidean Distance), 코사인 유사도(Cosine Similarity), 피어슨 상관계수(Pearson Correlation Coefficient) 방법 등이 있고, 이웃 선정 단계에는 상관 한계치(Correlation-Threshold), 근접 N 이웃(Best-N-Neighbors) 방법 등이 있다. 마지막으로 예측값 생성 단계에는 단순평균(Simple Average), 가중합(Weighted Sum), 조정 가중합(Adjusted Weighted Sum) 등이 있다. 이처럼 협업여과 추천기법에는 다양한 기법들이 사용되고 있다. 따라서 본 논문에서는 사용자 기반 협업여과와 아이템 기반 협업여과 추천기법에 사용되는 유사도 측정 기법과 예측값 생성 기법의 최적화된 조합을 알아보기 위해 성능 실험 및 비교 분석을 하였다. 실험은 GroupLens의 MovieLens 데이터 셋을 활용하였고 MAE(Mean Absolute Error)값을 이용하여 추천기법을 비교 하였다. 실험을 통해 유사도 측정 기법과 예측값 생성 기법의 최적화된 조합을 찾을 수 있었고, 사용자 기반 협업여과와 아이템 기반 협업여과의 성능비교를 통해 아이템 기반 협업여과의 성능이 보다 우수했음을 확인 하였다.

• Journal of Intelligence and Information Systems
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• v.22 no.3
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• pp.113-127
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• 2016

Among the techniques for recommendation, collaborative filtering (CF) is commonly recognized to be the most effective for implementing recommender systems. Until now, CF has been popularly studied and adopted in both academic and real-world applications. The basic idea of CF is to create recommendation results by finding correlations between users of a recommendation system. CF system compares users based on how similar they are, and recommend products to users by using other like-minded people's results of evaluation for each product. Thus, it is very important to compute evaluation similarities among users in CF because the recommendation quality depends on it. Typical CF uses user's explicit numeric ratings of items (i.e. quantitative information) when computing the similarities among users in CF. In other words, user's numeric ratings have been a sole source of user preference information in traditional CF. However, user ratings are unable to fully reflect user's actual preferences from time to time. According to several studies, users may more actively accommodate recommendation of reliable others when purchasing goods. Thus, trust relationship can be regarded as the informative source for identifying user's preference with accuracy. Under this background, we propose a new hybrid recommender system that fuses CF and social network analysis (SNA). The proposed system adopts the recommendation algorithm that additionally reflect the result analyzed by SNA. In detail, our proposed system is based on conventional memory-based CF, but it is designed to use both user's numeric ratings and trust relationship information between users when calculating user similarities. For this, our system creates and uses not only user-item rating matrix, but also user-to-user trust network. As the methods for calculating user similarity between users, we proposed two alternatives - one is algorithm calculating the degree of similarity between users by utilizing in-degree and out-degree centrality, which are the indices representing the central location in the social network. We named these approaches as 'Trust CF - All' and 'Trust CF - Conditional'. The other alternative is the algorithm reflecting a neighbor's score higher when a target user trusts the neighbor directly or indirectly. The direct or indirect trust relationship can be identified by searching trust network of users. In this study, we call this approach 'Trust CF - Search'. To validate the applicability of the proposed system, we used experimental data provided by LibRec that crawled from the entire FilmTrust website. It consists of ratings of movies and trust relationship network indicating who to trust between users. The experimental system was implemented using Microsoft Visual Basic for Applications (VBA) and UCINET 6. To examine the effectiveness of the proposed system, we compared the performance of our proposed method with one of conventional CF system. The performances of recommender system were evaluated by using average MAE (mean absolute error). The analysis results confirmed that in case of applying without conditions the in-degree centrality index of trusted network of users(i.e. Trust CF - All), the accuracy (MAE = 0.565134) was lower than conventional CF (MAE = 0.564966). And, in case of applying the in-degree centrality index only to the users with the out-degree centrality above a certain threshold value(i.e. Trust CF - Conditional), the proposed system improved the accuracy a little (MAE = 0.564909) compared to traditional CF. However, the algorithm searching based on the trusted network of users (i.e. Trust CF - Search) was found to show the best performance (MAE = 0.564846). And the result from paired samples t-test presented that Trust CF - Search outperformed conventional CF with 10% statistical significance level. Our study sheds a light on the application of user's trust relationship network information for facilitating electronic commerce by recommending proper items to users.