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Stock selection multicriteria decision‐making method based on elimination and choice translating reality I with Z‐numbers
Author(s) -
Peng Honggang,
Xiao Zhi,
Wang Jianqiang,
Li Jian
Publication year - 2021
Publication title -
international journal of intelligent systems
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.291
H-Index - 87
eISSN - 1098-111X
pISSN - 0884-8173
DOI - 10.1002/int.22556
Subject(s) - electre , multiple criteria decision analysis , computer science , stock (firearms) , operations research , stock market , fuzzy logic , data mining , mathematics , artificial intelligence , engineering , mechanical engineering , paleontology , horse , biology
Stock selection for effective investment decisions is a valuable and attractive research interest for many years. Owing to the uncertainty and complexity of the stock market, many fuzzy multicriteria decision‐making (MCDM) methods were proposed to solve stock selection problems. However, these methods have difficulty in characterizing unreliable information, which is widespread in the stock market, and handling the non‐compensation among multiple criteria. In this paper, an innovative method is developed from the perspectives of information reliability and criterion non‐compensation to manage stock selection problems. First, the Z‐number, which is a powerful tool for describing real‐life information and identifying information reliability, is introduced to depict stock evaluation information. Second, the outranking degree of Z‐numbers is defined based on the fuzzy and probability information. Subsequently, some outranking aggregation and exploitation procedures are presented based on the idea of Elimination and Choice Translating Reality (ELECTRE) I to handle the non‐compensation among stock evaluation criteria. By integrating the above studies, a Z‐number ELECTRE I MCDM method is developed. Finally, a stock investment object selection problem is solved, and some discussions and analyses are conducted to testify the applicability and validity of this method.