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Introduction to Business Rules
Business rules represent the intrinsic relationships between business entities. A business rule can be a relationship between gas price and local economy, or that between the spending capability and income level and professional occupation within a customer group. Credit companies and banks are faced with the big issue of fraud which costs them billions of dollars each year; they need to automatically detect fraud. More important for them is the ability to automatically explain which and why people tend to fraud - an explanation process that is not available in most neural network-based data mining software.
Neuro-fuzzy Modeling
Neuro-fuzzy modeling is to use neural networks and fuzzy set theory to model practical systems. Zaptron has developed a proprietary neuro-fuzzy technology that can automatically extract business rules from the neuro-fuzzy model. These rules can explain which and why people tend to fraud, or why a customer price increases.
A Case Study
One set of data is given below to demonstrate the rule extraction algorithm developed by Zaptron scientists.(to be continued)
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