Ant Colony Algorithm Used for Bankruptcy Prediction

Bankruptcy prediction is a hot topic. Traditional methods consist of univariate model and multivariate model such as neural network. However, the NNs can not extract effective rules. Thus, a novel approach was proposed in this paper to extract rules. First, t-test method was used to select 5 features from 55 original features. Second, the rule encoding was constructed. Third, the ant colony algorithm was utilized to find the optimal rule. Experiments on 200 corporate demonstrate that this proposed algorithm is effective and rapid.