Xi-Hua Li
School of Business, Central South University, 932 Southern Lushan Road, Changsha, 410083, China
Bei-Ling Ma
School of Business, Central South University, 932 Southern Lushan Road, Changsha, 410083, China
ABSTRACT
The weighted method is the most often used operators to aggregate criteria in decision making problems with the assumption that there are no interactions among criteria while in the real world, most criteria have inter-dependent or interactive characteristics. The discrete Choquet integral is a more suitable aggregation operator as it takes into accounts the interactions and not assuming the additivity and independence. This study proposes a granulation-based method to construct fuzzy measures needed by the discrete Choquet integral and a real data set is analyzed. The advantage of the granulation-based method is that no population probability is to be estimated such that the error of estimating the population probability is reduced. Three methods, including weighted sum method, the discrete Choquet integral with the entropy-based method and our proposed discrete Choquet integral with the granulation-based method, are used in this study to evaluate the enterprise financial risk based on a comprehensive assessment of the financial risk by multiple discriminant analysis. The results show that the discrete Choquet integral with the granulation-based method outperform the weighted sum method and the discrete Choquet integral with the entropy-based method in the evaluation of enterprise financial risk.
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How to cite this article
Xi-Hua Li and Bei-Ling Ma, 2013. Granulation-based Measure for Risk Assessment. Journal of Applied Sciences, 13: 4346-4354.
DOI: 10.3923/jas.2013.4346.4354
URL: https://scialert.net/abstract/?doi=jas.2013.4346.4354
DOI: 10.3923/jas.2013.4346.4354
URL: https://scialert.net/abstract/?doi=jas.2013.4346.4354
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