A linguistic-valued approximate reasoning approach for financial decision making

Abstract

In order to process the linguistic-valued information with uncertainty in the financial decision-making, the present work uses a lattice-valued logical algebra-lattice implication algebra to deal with both comparable and incomparable linguistic truth-values. A new personal financial decision auxiliary modeling framework based on the lattice-ordered linguistic truth-valued logic is proposed. The concepts of linguistic-valued similarity and linguistic valued degree assignment function are introduced, and then a linguistic-valued approximate reasoning approach for financial decision making is presented. A case study is then provided which illustrates that the proposed approach is more flexible and effective with handling the financial decision-making problem involved with linguistic-valued information with uncertainty.