• Journal of Intelligence and Information Systems
• /
• v.26 no.1
• /
• pp.135-149
• /
• 2020

Artificial intelligences are changing world. Financial market is also not an exception. Robo-Advisor is actively being developed, making up the weakness of traditional asset allocation methods and replacing the parts that are difficult for the traditional methods. It makes automated investment decisions with artificial intelligence algorithms and is used with various asset allocation models such as mean-variance model, Black-Litterman model and risk parity model. Risk parity model is a typical risk-based asset allocation model which is focused on the volatility of assets. It avoids investment risk structurally. So it has stability in the management of large size fund and it has been widely used in financial field. XGBoost model is a parallel tree-boosting method. It is an optimized gradient boosting model designed to be highly efficient and flexible. It not only makes billions of examples in limited memory environments but is also very fast to learn compared to traditional boosting methods. It is frequently used in various fields of data analysis and has a lot of advantages. So in this study, we propose a new asset allocation model that combines risk parity model and XGBoost machine learning model. This model uses XGBoost to predict the risk of assets and applies the predictive risk to the process of covariance estimation. There are estimated errors between the estimation period and the actual investment period because the optimized asset allocation model estimates the proportion of investments based on historical data. these estimated errors adversely affect the optimized portfolio performance. This study aims to improve the stability and portfolio performance of the model by predicting the volatility of the next investment period and reducing estimated errors of optimized asset allocation model. As a result, it narrows the gap between theory and practice and proposes a more advanced asset allocation model. In this study, we used the Korean stock market price data for a total of 17 years from 2003 to 2019 for the empirical test of the suggested model. The data sets are specifically composed of energy, finance, IT, industrial, material, telecommunication, utility, consumer, health care and staple sectors. We accumulated the value of prediction using moving-window method by 1,000 in-sample and 20 out-of-sample, so we produced a total of 154 rebalancing back-testing results. We analyzed portfolio performance in terms of cumulative rate of return and got a lot of sample data because of long period results. Comparing with traditional risk parity model, this experiment recorded improvements in both cumulative yield and reduction of estimated errors. The total cumulative return is 45.748%, about 5% higher than that of risk parity model and also the estimated errors are reduced in 9 out of 10 industry sectors. The reduction of estimated errors increases stability of the model and makes it easy to apply in practical investment. The results of the experiment showed improvement of portfolio performance by reducing the estimated errors of the optimized asset allocation model. Many financial models and asset allocation models are limited in practical investment because of the most fundamental question of whether the past characteristics of assets will continue into the future in the changing financial market. However, this study not only takes advantage of traditional asset allocation models, but also supplements the limitations of traditional methods and increases stability by predicting the risks of assets with the latest algorithm. There are various studies on parametric estimation methods to reduce the estimated errors in the portfolio optimization. We also suggested a new method to reduce estimated errors in optimized asset allocation model using machine learning. So this study is meaningful in that it proposes an advanced artificial intelligence asset allocation model for the fast-developing financial markets.

• Journal of Intelligence and Information Systems
• /
• v.24 no.2
• /
• pp.111-124
• /
• 2018

This study aims to develop a classification model for predicting the occurrence of hyperlipidemia, one of the chronic diseases. Prior studies applying data mining techniques for predicting disease can be classified into a model design study for predicting cardiovascular disease and a study comparing disease prediction research results. In the case of foreign literatures, studies predicting cardiovascular disease were predominant in predicting disease using data mining techniques. Although domestic studies were not much different from those of foreign countries, studies focusing on hypertension and diabetes were mainly conducted. Since hypertension and diabetes as well as chronic diseases, hyperlipidemia, are also of high importance, this study selected hyperlipidemia as the disease to be analyzed. We also developed a model for predicting hyperlipidemia using SVM and meta learning algorithms, which are already known to have excellent predictive power. In order to achieve the purpose of this study, we used data set from Korea Health Panel 2012. The Korean Health Panel produces basic data on the level of health expenditure, health level and health behavior, and has conducted an annual survey since 2008. In this study, 1,088 patients with hyperlipidemia were randomly selected from the hospitalized, outpatient, emergency, and chronic disease data of the Korean Health Panel in 2012, and 1,088 nonpatients were also randomly extracted. A total of 2,176 people were selected for the study. Three methods were used to select input variables for predicting hyperlipidemia. First, stepwise method was performed using logistic regression. Among the 17 variables, the categorical variables(except for length of smoking) are expressed as dummy variables, which are assumed to be separate variables on the basis of the reference group, and these variables were analyzed. Six variables (age, BMI, education level, marital status, smoking status, gender) excluding income level and smoking period were selected based on significance level 0.1. Second, C4.5 as a decision tree algorithm is used. The significant input variables were age, smoking status, and education level. Finally, C4.5 as a decision tree algorithm is used. In SVM, the input variables selected by genetic algorithms consisted of 6 variables such as age, marital status, education level, economic activity, smoking period, and physical activity status, and the input variables selected by genetic algorithms in artificial neural network consist of 3 variables such as age, marital status, and education level. Based on the selected parameters, we compared SVM, meta learning algorithm and other prediction models for hyperlipidemia patients, and compared the classification performances using TP rate and precision. The main results of the analysis are as follows. First, the accuracy of the SVM was 88.4% and the accuracy of the artificial neural network was 86.7%. Second, the accuracy of classification models using the selected input variables through stepwise method was slightly higher than that of classification models using the whole variables. Third, the precision of artificial neural network was higher than that of SVM when only three variables as input variables were selected by decision trees. As a result of classification models based on the input variables selected through the genetic algorithm, classification accuracy of SVM was 88.5% and that of artificial neural network was 87.9%. Finally, this study indicated that stacking as the meta learning algorithm proposed in this study, has the best performance when it uses the predicted outputs of SVM and MLP as input variables of SVM, which is a meta classifier. The purpose of this study was to predict hyperlipidemia, one of the representative chronic diseases. To do this, we used SVM and meta-learning algorithms, which is known to have high accuracy. As a result, the accuracy of classification of hyperlipidemia in the stacking as a meta learner was higher than other meta-learning algorithms. However, the predictive performance of the meta-learning algorithm proposed in this study is the same as that of SVM with the best performance (88.6%) among the single models. The limitations of this study are as follows. First, various variable selection methods were tried, but most variables used in the study were categorical dummy variables. In the case with a large number of categorical variables, the results may be different if continuous variables are used because the model can be better suited to categorical variables such as decision trees than general models such as neural networks. Despite these limitations, this study has significance in predicting hyperlipidemia with hybrid models such as met learning algorithms which have not been studied previously. It can be said that the result of improving the model accuracy by applying various variable selection techniques is meaningful. In addition, it is expected that our proposed model will be effective for the prevention and management of hyperlipidemia.

• Journal of The Korean Association of Information Education
• /
• v.23 no.6
• /
• pp.639-653
• /
• 2019

The purpose of this study is to design an instructional framework and cognitive learning environment for AI education based on computational thinking in order to ground the theoretical rationale for AI education. Based on the literature review, the learning model is proposed to select the algorithms and problem-solving models through the abstraction process at the stage of data collection and discovery. Meanwhile, the instructional model of AI education through computational thinking is suggested to enhance the problem-solving ability using the AI by performing the processes of problem-solving and prediction based on the stages of automating and evaluating the selected algorithms. By analyzing the research related to the cognitive learning environment for AI education, the instructional framework was composed mainly of abstraction which is the core thinking process of computational thinking through the transition from the stage of the agency to modeling. The instructional framework of AI education and the process of constructing the cognitive learning environment presented in this study are characterized in that they are based on computational thinking, and those are expected to be the basis of further research for the instructional design of AI education.

• The Journal of the Convergence on Culture Technology
• /
• v.6 no.1
• /
• pp.111-120
• /
• 2020

As an application of big data and artificial intelligence techniques, this study proposes an atypical language-based sentimental opinion poll methodology, unlike conventional opinion poll methodology. An alternative method for the sentimental classification model based on existing statistical analysis was to collect real-time Twitter data related to parliamentary elections and perform empirical analyses on the Polarity and Intensity of public opinion using attribute-based sensitivity analysis. In order to classify the polarity of words used on individual SNS, the polarity of the new Twitter data was estimated using the learned Lasso and Ridge regression models while extracting independent variables that greatly affect the polarity variables. A social network analysis of the relationships of people with friends on SNS suggested a way to identify peer group sensitivity. Based on what voters expressed on social media, political opinion sensitivity analysis was used to predict party approval rating and measure the accuracy of the predictive model polarity analysis, confirming the applicability of the sensitivity analysis methodology in the political field.

• The Journal of the Institute of Internet, Broadcasting and Communication
• /
• v.21 no.3
• /
• pp.175-181
• /
• 2021

This paper analyzes the artificial intelligence-based approach for short-term energy consumption prediction. In this paper, we employ the reinforcement learning algorithms to improve the limitation of the supervised learning algorithms which usually utilize to the short-term energy consumption prediction technologies. The supervised learning algorithm-based approaches have high complexity because the approaches require contextual information as well as energy consumption data for sufficient performance. We propose a deep reinforcement learning algorithm based on multi-agent to predict energy consumption only with energy consumption data for improving the complexity of data and learning models. The proposed scheme is simulated using public energy consumption data and confirmed the performance. The proposed scheme can predict a similar value to the actual value except for the outlier data.

• Journal of Internet Computing and Services
• /
• v.24 no.6
• /
• pp.99-105
• /
• 2023

In the 4th industrial revolution, the field of criminal justice is paying attention to Legaltech using artificial intelligence to provide efficient legal services. This paper attempted to create a crime prediction model that can apply Recurrent Neural Network(RNN) to increase the potential for using legal technology in the domestic criminal justice field. To this end, the crime process was divided into pre, during, and post stages based on the criminal facts described in the judgment, utilizing crime script analysis techniques. In addition, at each time point, the method and evidence of crime were classified into objects, actions, and environments based on the sentence composition elements and the 8 principles of investigation. The case summary analysis framework derived from this study can contribute to establishing situational crime prevention strategies because it is easy to identify typical patterns of specific crime methods. Furthermore, the results of this study can be used as a useful reference for research on generating crime situation prediction data based on RNN models in future follow-up studies.

• Proceedings of the Korea Water Resources Association Conference
• /
• 2011.05a
• /
• pp.18-18
• /
• 2011

Climate change is impacting and will increasingly impact both the quantity and quality of the world's water resources in a variety of ways. In some areas warming climate results in increased rainfall, surface runoff, and groundwater recharge while in others there may be declines in all of these. Water quality is described by a number of variables. Some are directly impacted by climate change. Temperature is an obvious example. Notably, increased atmospheric concentrations of $CO_2$ triggering climate change increase the $CO_2$ dissolving into water. This has manifold consequences including decreased pH and increased alkalinity, with resultant increases in dissolved concentrations of the minerals in geologic materials contacted by such water. Climate change is also expected to increase the number and intensity of extreme climate events, with related hydrologic changes. A simple framework has been developed in New Zealand for assessing and predicting climate change impacts on water resources. Assessment is largely based on trend analysis of historic data using the non-parametric Mann-Kendall method. Trend analysis requires long-term, regular monitoring data for both climate and hydrologic variables. Data quality is of primary importance and data gaps must be avoided. Quantitative prediction of climate change impacts on the quantity of water resources can be accomplished by computer modelling. This requires the serial coupling of various models. For example, regional downscaling of results from a world-wide general circulation model (GCM) can be used to forecast temperatures and precipitation for various emissions scenarios in specific catchments. Mechanistic or artificial intelligence modelling can then be used with these inputs to simulate climate change impacts over time, such as changes in streamflow, groundwater-surface water interactions, and changes in groundwater levels. The Waimea Plains catchment in New Zealand was selected for a test application of these assessment and prediction methods. This catchment is predicted to undergo relatively minor impacts due to climate change. All available climate and hydrologic databases were obtained and analyzed. These included climate (temperature, precipitation, solar radiation and sunshine hours, evapotranspiration, humidity, and cloud cover) and hydrologic (streamflow and quality and groundwater levels and quality) records. Results varied but there were indications of atmospheric temperature increasing, rainfall decreasing, streamflow decreasing, and groundwater level decreasing trends. Artificial intelligence modelling was applied to predict water usage, rainfall recharge of groundwater, and upstream flow for two regionally downscaled climate change scenarios (A1B and A2). The AI methods used were multi-layer perceptron (MLP) with extended Kalman filtering (EKF), genetic programming (GP), and a dynamic neuro-fuzzy local modelling system (DNFLMS), respectively. These were then used as inputs to a mechanistic groundwater flow-surface water interaction model (MODFLOW). A DNFLMS was also used to simulate downstream flow and groundwater levels for comparison with MODFLOW outputs. MODFLOW and DNFLMS outputs were consistent. They indicated declines in streamflow on the order of 21 to 23% for MODFLOW and DNFLMS (A1B scenario), respectively, and 27% in both cases for the A2 scenario under severe drought conditions by 2058-2059, with little if any change in groundwater levels.

• Information Systems Review
• /
• v.22 no.1
• /
• pp.59-72
• /
• 2020

Artificial Intelligence is establishing itself as a familiar tool from an intractable concept. In this trend, financial sector is also looking to improve the problem of existing system which includes Fraud Detection System (FDS). It is being difficult to detect sophisticated cyber financial fraud using original rule-based FDS. This is because diversification of payment environment and increasing number of electronic financial transactions has been emerged. In order to overcome present FDS, this paper suggests 3 types of artificial intelligence models, Generative Adversarial Network (GAN), Deep Neural Network (DNN), and Convolutional Neural Network (CNN). GAN proves how data imbalance problem can be developed while DNN and CNN show how abnormal financial trading patterns can be precisely detected. In conclusion, among the experiments on this paper, WGAN has the highest improvement effects on data imbalance problem. DNN model reflects more effects on fraud classification comparatively.

• Journal of dental hygiene science
• /
• v.24 no.1
• /
• pp.62-70
• /
• 2024

Background: This study aimed to evaluate ChatGPT's performance accuracy in responding to questions from the national dental hygienist examination. Moreover, through an analysis of ChatGPT's incorrect responses, this research intended to pinpoint the predominant types of errors. Methods: To evaluate ChatGPT-3.5's performance according to the type of national examination questions, the researchers classified 200 questions of the 49th National Dental Hygienist Examination into recall, interpretation, and solving type questions. The researchers strategically modified the questions to counteract potential misunderstandings from implied meanings or technical terminology in Korea. To assess ChatGPT-3.5's problem-solving capabilities in applying previously acquired knowledge, the questions were first converted to subjective type. If ChatGPT-3.5 generated an incorrect response, an original multiple-choice framework was provided again. Two hundred questions were input into ChatGPT-3.5 and the generated responses were analyzed. After using ChatGPT, the accuracy of each response was evaluated by researchers according to the types of questions, and the types of incorrect responses were categorized (logical, information, and statistical errors). Finally, hallucination was evaluated when ChatGPT provided misleading information by answering something that was not true as if it were true. Results: ChatGPT's responses to the national examination were 45.5% accurate. Accuracy by question type was 60.3% for recall and 13.0% for problem-solving type questions. The accuracy rate for the subjective solving questions was 13.0%, while the accuracy for the objective questions increased to 43.5%. The most common types of incorrect responses were logical errors 65.1% of all. Of the total 102 incorrectly answered questions, 100 were categorized as hallucinations. Conclusion: ChatGPT-3.5 was found to be limited in its ability to provide evidence-based correct responses to the Korean national dental hygiene examination. Therefore, dental hygienists in the education or clinical fields should be careful to use artificial intelligence-generated materials with a critical view.

• Journal of Intelligence and Information Systems
• /
• v.28 no.2
• /
• pp.237-262
• /
• 2022

There has been a growing interest in IPOs (Initial Public Offerings) due to the profitable returns that IPO stocks can offer to investors. However, IPOs can be speculative investments that may involve substantial risk as well because shares tend to be volatile, and the supply of IPO shares is often highly limited. Therefore, it is crucially important that IPO investors are well informed of the issuing firms and the market before deciding whether to invest or not. Unlike institutional investors, individual investors are at a disadvantage since there are few opportunities for individuals to obtain information on the IPOs. In this regard, the purpose of this study is to provide individual investors with the information they may consider when making an IPO investment decision. This study presents a model that uses machine learning and text analysis to predict whether an IPO stock price would move up or down after the first 5 trading days. Our sample includes 691 Korean IPOs from June 2009 to December 2020. The input variables for the prediction are three tone variables created from IPO prospectuses and quantitative variables that are either firm-specific, issue-specific, or market-specific. The three prospectus tone variables indicate the percentage of positive, neutral, and negative sentences in a prospectus, respectively. We considered only the sentences in the Risk Factors section of a prospectus for the tone analysis in this study. All sentences were classified into 'positive', 'neutral', and 'negative' via text analysis using TF-IDF (Term Frequency - Inverse Document Frequency). Measuring the tone of each sentence was conducted by machine learning instead of a lexicon-based approach due to the lack of sentiment dictionaries suitable for Korean text analysis in the context of finance. For this reason, the training set was created by randomly selecting 10% of the sentences from each prospectus, and the sentence classification task on the training set was performed after reading each sentence in person. Then, based on the training set, a Support Vector Machine model was utilized to predict the tone of sentences in the test set. Finally, the machine learning model calculated the percentages of positive, neutral, and negative sentences in each prospectus. To predict the price movement of an IPO stock, four different machine learning techniques were applied: Logistic Regression, Random Forest, Support Vector Machine, and Artificial Neural Network. According to the results, models that use quantitative variables using technical analysis and prospectus tone variables together show higher accuracy than models that use only quantitative variables. More specifically, the prediction accuracy was improved by 1.45% points in the Random Forest model, 4.34% points in the Artificial Neural Network model, and 5.07% points in the Support Vector Machine model. After testing the performance of these machine learning techniques, the Artificial Neural Network model using both quantitative variables and prospectus tone variables was the model with the highest prediction accuracy rate, which was 61.59%. The results indicate that the tone of a prospectus is a significant factor in predicting the price movement of an IPO stock. In addition, the McNemar test was used to verify the statistically significant difference between the models. The model using only quantitative variables and the model using both the quantitative variables and the prospectus tone variables were compared, and it was confirmed that the predictive performance improved significantly at a 1% significance level.