Complete 12 pages APA formatted article: 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.

There have been numerous applications of fuzzy logic especially in robotics and general use of artificial systems. Our concern here is to employ fuzzy logic in coming up with a representation of its financial aspects. Such a prototype will enable it to make recommendations based on that information or even used to forecast the direction the market will follow in the future. There are many complexities emerging in the current business world as a result of an evolving world with different perspectives. As a consequence, there have been many factors influencing the status of items in a financial environment that makes predicting them very difficult. These factors are said to be fuzzy (Anderson, 2005). The core of our research is to analyze the prediction of the financial status of companies both for a duration of 1-2 years as an economic menace.&nbsp.