Forecasting the leading index using fuzzy linguistic prediction

We propose a fuzzy linguistic prediction method for improving fuzzy random prediction . It uses the bit map summary to determine the trend of objects rising or falling and then uses the fuzzy linguistic summary to compute the parameter of fuzzy random prediction . To show how this method works, we use it to predict the present Taiwan leading index, which gives the economic trend for the next 3 months. By further predicting the leading indices of months that follow, we can forecast the economic trend for the next year. © 2003 Wiley Periodicals, Inc.