Multistep Fuzzy Bridged Refinement Domain Adaptation Algorithm and Its Application to Bank Failure Prediction

Machine learning plays an important role in data classification and data-based prediction. In some real-world applications, however, the training data (coming from the source domain) and test data (from the target domain) come from different domains or time periods, and this may result in the different distributions of some features. Moreover, the values of the features and/or labels of the datasets might be nonnumeric and involve vague values. Traditional learning-based prediction and classification methods cannot handle these two issues. In this study, we propose a multistep fuzzy bridged refinement domain adaptation algorithm, which offers an effective way to deal with both issues. It utilizes a concept of similarity to modify the labels of the target instances that were initially predicted by a shift-unaware model. It then refines the labels using instances that are most similar to a given target instance. These instances are extracted from mixture domains composed of source and target domains. The proposed algorithm is built on a basis of some data and refines the labels, thus performing completely independently of the shift-unaware prediction model. The algorithm uses a fuzzy set-based approach to deal with the vague values of the features and labels. Four different datasets are used in the experiments to validate the proposed algorithm. The results, which are compared with those generated by the existing domain adaptation methods, demonstrate a significant improvement in prediction accuracy in both the above-mentioned datasets.