Business Failure Prediction Using Modified ants Algorithm

This chapter successfully introduces the ants algorithm into the business failure prediction problem domain. The original ants algorithm is also modified and improved in both transition probability and pheromone trail update mechanism. The distinct advantages of this modified ants algorithm (MAA) consist of no special demand on the problem’s form, lower computer storage, and less CPU time for computation. The empirical results based on the real-world data demonstrate the effectiveness of its application to the business failure prediction problem domain and also show its advantages compared with RPA (recursive partition algorithm), DA (Discriminate Analysis) and GP (Genetic Programming).

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