Non-homogeneous Grey Model NGM(1,1) with initial value modification and its application

Aiming at the problem existing in determining original value of Non-homogeneous Grey Model NGM(1,1), by analysing model-constructing mechanism of non-homogeneous grey GM(1,1) model, the cause of the problem existed was found, and in order to minimize the quadratic sum of its fitting error, a new initial value determining approach is proposed and the calculating formula for determining initial value is deduced. The grey model NGM(1,1) proposed in this paper which is constructed based on optimal initial value determining method has the characteristic of high precision as well as high adaptability. Example of data processing validates the reliability and practicality of the model. So, it has great significance in theory and practice.