A fuzzy logic based approach for data classification

Abstract

In this paper, we have developed a new algorithm to handle the classification of data by using fuzzy rules on real world data set. Our proposed algorithm helps banks to decide whether to grant loan to customers by classifying them into three clusters—accepted, rejected and those who have probability to get loan. To handle third cluster, fuzzy logic based approach is appropriate. We have implemented our proposed algorithm on standard bank of England data set. Our algorithm makes prediction for getting loan on basis of various attributes like job status, applicant is the chief loan applicant or not, source of income, weight factor etc. Fuzzy rules generated from the numerical data give output in linguistic terms. We have compared our algorithm with the state of the art algorithms—K-Means, Fuzzy C-means etc. Our algorithm has proved to be more efficient than others in terms of performance.