Outcome prediction based on historical data has been of practical and theoretical interest in many disciplines. A common type of outcome prediction is binary or discrete outcome prediction, as found in medical diagnosis and firm bankruptcy prediction. The prediction problem studied in this paper...

We present a training algorithm for multilayer perceptrons which relates to the technique of principal component analysis. The latter is performed with respect to a correlation matrix which is computed from the example inputs and their target outputs. For large networks the novel procedure...

Neural network, K-nearest neighbor, naive Bayesian classifier and genetic algorithm evolving classification rules are compared for their prediction accuracies on stock exchange index data. The method yielding the best result, nearest neighbor, is then refined and incorporated into a simple...