Application of Fuzzy Logic in Financial Modeling.

Complete 12 pages APA formatted article: Application of Fuzzy Logic in Financial Modeling. The cause of this is the ever-changing approaches to economic markets and commercial settings, in general. The aim here is to bring out how fuzzy logic is used to predict bankruptcy in organizations. Currently, many diverse factors are of the compound nature of businesses. Our concentration is in the prediction of the financial status of an organization within a particular period. In view of acquiring proper trading in these markets, there is a need to build financial models that can map the current situation in such markets. As a result, one can change their actions and steps they intend to take accordingly. In reality, it is very difficult for an individual or a company to be 100% bankrupt. It is very complex to define the extent of bankruptcy using traditional statistical means. An example of such a conventional means is an analysis function that is based on multivariate discriminant. Fuzzy logic will be used to define in exact facts in an organization. The model that results is used to predict the extent of risk as concerns to bankruptcy.