• Journal of the Korea Convergence Society
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• v.12 no.4
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• pp.249-258
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• 2021

Bitcoin prices have been soaring recently as investors flock to cryptocurrency exchanges. The purpose of this study is to predict the Bitcoin price using a deep learning model and analyze whether Bitcoin is profitable through investment strategy. LSTM is utilized as Bitcoin prediction model with nonlinearity and long-term memory and the profitability of MA cross-over strategy with predicted prices as input variables is analyzed. Investment performance of Bitcoin strategy using LSTM forecast prices from 2013 to 2021 showed return improvement of 5.5% and 46% more than market price MA cross-over strategy and benchmark Buy & Hold strategy, respectively. The results of this study, which expanded to recent data, supported the inefficiency of the cryptocurrency market, as did previous studies, and showed the feasibility of using the deep learning model for Bitcoin investors. In future research, it is necessary to develop optimal prediction models and improve the profitability of Bitcoin investment strategies through performance comparison of various deep learning models.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.432-438
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• 2011

The purpose of the present thesis is to develop bankruptcy prediction models capable of being applied to the Korean construction industry and to deduce an optimal model through comparative evaluation of final developed models. A study population was selected as general contractors in the Korean construction industry. In order to ease the sample securing and reliability of data, it was limited to general contractors receiving external audit from the government. The study samples are divided into a bankrupt company group and a non-bankrupt company group. The bankruptcy, insolvency, declaration of insolvency, workout and corporate reorganization were used as selection criteria of a bankrupt company. A company that is not included in the selection criteria of the bankrupt company group was selected as a non-bankrupt company. Accordingly, the study sample is composed of a total of 112 samples and is composed of 48 bankrupt companies and 64 non-bankrupt companies. A financial ratio was used as early predictors for development of an estimation model. A total of 90 financial ratios were used and were divided into growth, profitability, productivity and added value. The MDA (Multivariate Discriminant Analysis) model and BLRA (Binary Logistic Regression Analysis) model were used for development of bankruptcy prediction models. The MDA model is an analysis method often used in the past bankruptcy prediction literature, and the BLRA is an analysis method capable of avoiding equal variance assumption. The stepwise (MDA) and forward stepwise method (BLRA) were used for selection of predictor variables in case of model construction. Twenty two variables were finally used in MDA and BLRA models according to timing of bankruptcy. The ROC-Curve Analysis and Classification Analysis were used for analysis of prediction performance of estimation models. The correct classification rate of an individual bankruptcy prediction model is as follows: 1) one year ago before the event of bankruptcy (MDA: 83.04%, BLRA: 93.75%); 2) two years ago before the event of bankruptcy (MDA: 77.68%, BLRA: 78.57%); 3) 3 years ago before the event of bankruptcy (MDA: 84.82%, BLRA: 91.96%). The AUC (Area Under Curve) of an individual bankruptcy prediction model is as follows. : 1) one year ago before the event of bankruptcy (MDA: 0.933, BLRA: 0.978); 2) two years ago before the event of bankruptcy (MDA: 0.852, BLRA: 0.875); 3) 3 years ago before the event of bankruptcy (MDA: 0.938, BLRA: 0.975). As a result of the present research, accuracy of the BLRA model is higher than the MDA model and its prediction performance is improved.

• Journal of Intelligence and Information Systems
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• v.18 no.4
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• pp.59-77
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• 2012

This study focuses on predicting which firms will increase capital by issuing new stocks in the near future. Many stakeholders, including banks, credit rating agencies and investors, performs a variety of analyses for firms' growth, profitability, stability, activity, productivity, etc., and regularly report the firms' financial analysis indices. In the paper, we develop predictive models for rights issues using these financial analysis indices and data mining techniques. This study approaches to building the predictive models from the perspective of two different analyses. The first is the analysis period. We divide the analysis period into before and after the IMF financial crisis, and examine whether there is the difference between the two periods. The second is the prediction time. In order to predict when firms increase capital by issuing new stocks, the prediction time is categorized as one year, two years and three years later. Therefore Total six prediction models are developed and analyzed. In this paper, we employ the decision tree technique to build the prediction models for rights issues. The decision tree is the most widely used prediction method which builds decision trees to label or categorize cases into a set of known classes. In contrast to neural networks, logistic regression and SVM, decision tree techniques are well suited for high-dimensional applications and have strong explanation capabilities. There are well-known decision tree induction algorithms such as CHAID, CART, QUEST, C5.0, etc. Among them, we use C5.0 algorithm which is the most recently developed algorithm and yields performance better than other algorithms. We obtained data for the rights issue and financial analysis from TS2000 of Korea Listed Companies Association. A record of financial analysis data is consisted of 89 variables which include 9 growth indices, 30 profitability indices, 23 stability indices, 6 activity indices and 8 productivity indices. For the model building and test, we used 10,925 financial analysis data of total 658 listed firms. PASW Modeler 13 was used to build C5.0 decision trees for the six prediction models. Total 84 variables among financial analysis data are selected as the input variables of each model, and the rights issue status (issued or not issued) is defined as the output variable. To develop prediction models using C5.0 node (Node Options: Output type = Rule set, Use boosting = false, Cross-validate = false, Mode = Simple, Favor = Generality), we used 60% of data for model building and 40% of data for model test. The results of experimental analysis show that the prediction accuracies of data after the IMF financial crisis (59.04% to 60.43%) are about 10 percent higher than ones before IMF financial crisis (68.78% to 71.41%). These results indicate that since the IMF financial crisis, the reliability of financial analysis indices has increased and the firm intention of rights issue has been more obvious. The experiment results also show that the stability-related indices have a major impact on conducting rights issue in the case of short-term prediction. On the other hand, the long-term prediction of conducting rights issue is affected by financial analysis indices on profitability, stability, activity and productivity. All the prediction models include the industry code as one of significant variables. This means that companies in different types of industries show their different types of patterns for rights issue. We conclude that it is desirable for stakeholders to take into account stability-related indices and more various financial analysis indices for short-term prediction and long-term prediction, respectively. The current study has several limitations. First, we need to compare the differences in accuracy by using different data mining techniques such as neural networks, logistic regression and SVM. Second, we are required to develop and to evaluate new prediction models including variables which research in the theory of capital structure has mentioned about the relevance to rights issue.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.18 no.8
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• pp.2431-2449
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• 2024

As problems such as water pollution and fish species depletion have become serious, a land-based fish farming is receiving a great attention for ensuring stable productivity. In the fish farming, it is important to determine the timing of shipments, as one of key factors to increase net profit on the aquaculture. In this paper, we propose a system for predicting net profit to support decision of timing of shipment using fish farming-related statistical data. The prediction system consists of growth and farm-gate price prediction models, a cost statistics table, and a net profit estimation algorithm. The Gaussian process regression (GPR) model is exploited for weight prediction based on the analysis that represents the characteristics of the weight data of cultured fish under the assumption of Gaussian probability processes. Moreover, the long short-term memory (LSTM) model is applied considering the simple time series characteristics of the farm-gate price data. In the case of GPR model, it allows to cope with data missing problem of the weight data collected from the fish farm in the time and temperature domains. To solve the problem that the data acquired from the fish farm is aperiodic and small in amount, we generate the corresponding data by adopting a data augmentation method based on the Gaussian model. Finally, the estimation method for net profit is proposed by concatenating weight, price, and cost predictions. The performance of the proposed system is analyzed by applying the system to the Korean flounder data.

• Animal Bioscience
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• v.37 no.4
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• pp.622-630
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• 2024

Objective: Pig breeders cannot obtain phenotypic information at the time of selection for sow lifetime productivity (SLP). They would benefit from obtaining genetic information of candidate sows. Genomic data interpreted using deep learning (DL) techniques could contribute to the genetic improvement of SLP to maximize farm profitability because DL models capture nonlinear genetic effects such as dominance and epistasis more efficiently than conventional genomic prediction methods based on linear models. This study aimed to investigate the usefulness of DL for the genomic prediction of two SLP-related traits; lifetime number of litters (LNL) and lifetime pig production (LPP). Methods: Two bivariate DL models, convolutional neural network (CNN) and local convolutional neural network (LCNN), were compared with conventional bivariate linear models (i.e., genomic best linear unbiased prediction, Bayesian ridge regression, Bayes A, and Bayes B). Phenotype and pedigree data were collected from 40,011 sows that had husbandry records. Among these, 3,652 pigs were genotyped using the PorcineSNP60K BeadChip. Results: The best predictive correlation for LNL was obtained with CNN (0.28), followed by LCNN (0.26) and conventional linear models (approximately 0.21). For LPP, the best predictive correlation was also obtained with CNN (0.29), followed by LCNN (0.27) and conventional linear models (approximately 0.25). A similar trend was observed with the mean squared error of prediction for the SLP traits. Conclusion: This study provides an example of a CNN that can outperform against the linear model-based genomic prediction approaches when the nonlinear interaction components are important because LNL and LPP exhibited strong epistatic interaction components. Additionally, our results suggest that applying bivariate DL models could also contribute to the prediction accuracy by utilizing the genetic correlation between LNL and LPP.

• Proceedings of the Korean Institute of Intelligent Systems Conference
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• 2006.11a
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• pp.285-288
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• 2006

Most previous studies on improving the effectiveness of CBR have focused on the similarity function aspect or optimization of case features and their weights. However, according to some of the prior research, finding the optimal k parameter for the k-nearest neighbor (k-NN) is also crucial for improving the performance of the CBR system. Nonetheless, there have been few attempts to optimize the number of neighbors, especially using artificial intelligence (AI) techniques. In this study, we introduce a genetic algorithm (GA) to optimize the number of neighbors that combine, as well as the weight of each feature. The new model is applied to the real-world case of a major telecommunication company in Korea in order to build the prediction model for the customer profitability level. Experimental results show that our GA-optimized CBR approach outperforms other AI techniques for this mulriclass classification problem.

• Journal of Digital Convergence
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• v.12 no.11
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• pp.209-214
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• 2014

Despite the recession of the global market, the domestic electronic appliance companies dominated TV market in North America. They took both the premium and mid-priced product market and achieved both profitability and volume due to strong product competitiveness and brand power. Despite doing well in the North American market, the domestic TV manufacturers are worried about product development, marketing and sales strategies to remain the continuous competitiveness in the TV market. This study proposes the a sales prediction model of electronic appliances using sales data of S company from the North American market. We develop the sales prediction models based on multiple regression analysis and artificial neural network and compare two models. Especially, this study analyzes the relevance between the TV sales and TV main features in order to improve the price competitiveness or improve the value of TV products.

• Journal of Digital Convergence
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• v.16 no.1
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• pp.231-242
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• 2018

The efficient management of the Length of Stay(LOS) is important in hospital. It is import to reduce medical cost for patients and increase profitability for hospitals. In order to efficiently manage LOS, it is necessary to develop an artificial intelligence-based prediction model that supports hospitals in benchmarking and reduction ways of LOS. In order to develop a predictive model of LOS for acute stroke patients, acute stroke patients were extracted from 2013 and 2014 discharge injury patient data. The data for analysis was classified as 60% for training and 40% for evaluation. In the model development, we used traditional regression technique such as multiple regression analysis method, artificial intelligence technique such as interactive decision tree, neural network technique, and ensemble technique which integrate all. Model evaluation used Root ASE (Absolute error) index. They were 23.7 by multiple regression, 23.7 by interactive decision tree, 22.7 by neural network and 22.7 by esemble technique. As a result of model evaluation, neural network technique which is artificial intelligence technique was found to be superior. Through this, the utility of artificial intelligence has been proved in the development of the prediction LOS model. In the future, it is necessary to continue research on how to utilize artificial intelligence techniques more effectively in the development of LOS prediction model.

• Journal of Intelligence and Information Systems
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• v.28 no.2
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• pp.307-332
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• 2022

One of the most intensively conducted research areas in business application study is a bankruptcy prediction model, a representative classification problem related to loan lending, investment decision making, and profitability to financial institutions. Many research demonstrated outstanding performance for bankruptcy prediction models using artificial intelligence techniques. However, since most machine learning algorithms are "black-box," AI has been identified as a prominent research topic for providing users with an explanation. Although there are many different approaches for explanations, this study focuses on explaining a bankruptcy prediction model using a counterfactual example. Users can obtain desired output from the model by using a counterfactual-based explanation, which provides an alternative case. This study introduces a counterfactual generation technique based on a genetic algorithm (GA) that leverages both domain knowledge (i.e., causal feasibility) and feature importance from a black-box model along with other critical counterfactual variables, including proximity, distribution, and sparsity. The proposed method was evaluated quantitatively and qualitatively to measure the quality and the validity.

• Information Systems Review
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• v.23 no.4
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• pp.183-198
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• 2021

Due to the Covid-19 pandemic, the home-training app market is growing rapidly and numerous apps are entering the market. It is becoming more difficult for an app to secure the profitability. In this study, by analyzing actual user data of a reward-based home-training app, we propose a model that predicts cash-cow users of the app. Cash-cow users are the users who watch in-stream ads to watch training videos although they cannot earn any rewards by doing so. Thus, these users make profits for the app yet do not incur any costs. The results of this study show that the users who irregularly watch training videos are more likely to be cash-cow users than the users who regularly watch training videos. This result suggests that, paradoxically, for sustainable profitability, home-training apps may need to find a way to retain the users who watch training videos irregularly so that they can be satisfied with the service and continue use the apps.