A Prediction System Based on Fuzzy Logic

The main objective of the paper is to build a prediction system to predict the future occurrence of an event. Fuzzy logic, among the various available Artificial Intelligence techniques, emerges as an advantageous technique in predicting future events. Subjective and Objective modeling are two types of fuzz), modeling. Objective type fuzzy modeling is used to build the prediction system. It is a combination of a clustering algorithm and fuzzy system identification which proves effective in improving the efficiency of the prediction. To train the prediction system, historical data is obtained from the web. Data specific to the desired application is obtained and is recorded. This recorded information is subjectively reasoned to develop containing only the necessary inputs to the prediction system. The subtractive clustering algorithm is used for its computational advantages and fuzzy rules are formed using system identification technique. Stock markets are excellent examples where this prediction system can be applied and the possibility of a rise or a fall in the market prices is predicted. The entire prediction system is realized using Java.