Risk aversion is one of the main themes in risk theory. Risk theory is treated usually by probability theory. The aim of this paper is to propose an approach of the risk aversion by possibility theory initiated by Zadeh in 1978 as an alternative of probability theory in the modeling of uncertain situations. The main notions studied in this paper are the possibilistic risk premium and the possib...

Vast pools of historical financial information are available on economies, industry, and individual companies that affect investors’ selection of appropriate portfolios. Fuzzy data provides a good tool to reflect investors’ opinions based on this information. A possibilistic mean variance safety-first portfolio selection model is developed to support investors’ decision making, to take into con...

Abstract: This paper deals with a portfolio selection problem with fuzzy return rates. A possibilistic mean VaR model was proposed for portfolio selection. Specially, we present a mathematical programming model with possibilistic constraint. The possibilistic programming problem can be solved by transforming it into a linear programming problem. A numerical example is given to illustrate the be...

— In this paper we study the optimal saving problem in the framework of possibility theory. The notion of possibilistic precautionary saving is introduced as a measure of the way the presence of possibilistic risk (represented by a fuzzy number) influences a consumer in establishing the level of optimal saving. The notion of prudence of an agent in the face of possibilistic risk is defined and ...

Possibility theory was initiated by Zadeh in 1978 as an alternative to probability theory. Probability theory is not efficient in the study of those uncertainty situations in which phenomena occur with a small frequency. In such cases it is preferable to apply techniques offered by possibility theory.In foundation of possibility theory one started on a paralel line with probability theory. Rand...

The conventional wisdom is that the concept of information is closely related to the concept of probability. In Shannon's information theory, information is equated to a reduction in entropy—a probabilistic concept. In this paper, a different view of information is put on the table. Information is equated to restriction. More concretely, a restriction is a limitation on the values which a varia...

Most of the real life classification problems have ill defined, imprecise or fuzzy class boundaries. Feedforward neural networks with conventional backpropagation learning algorithm are not tailored to this kind of classification problem. Hence, in this paper, feedforward neural networks, that use backpropagation learning algorithm with fuzzy objective functions, are investigated. A learning al...

Nowadays, the Fuzzy C-Means method has become one of the most popular clustering methods based on minimization of a criterion function. However, the performance of this clustering algorithm may be significantly degraded in the presence of noise. This paper presents a robust clustering algorithm called Bilateral Weighted Fuzzy CMeans (BWFCM). We used a new objective function that uses some kinds...

The conventional wisdom is that the concept of information is closely related to the concept of probability. In Shannon's information theory, information is equated to a reduction in entropy—a probabilistic concept. In this paper, a different view of information is put on the table. Information is equated to restriction. More concretely, a restriction is a limitation on the values which a varia...

Usage of fuzzy differential equations (FDEs) is a natural way to model dynamical systems under possibilistic uncertainty. We consider second order hybrid fuzzy differentia