Study Data from Faculty of Business Provide New Insights into Risk Management (An Efficient Method for Pricing Analysis Based on Neural Networks): Insurance – Risk Management

2022 SEP 13 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A new study on risk management is now available. According to news originating from the Faculty of Business by NewsRx correspondents, research stated, “The revolution in neural networks is a significant technological shift. It has an impact on not only all aspects of production and life, but also economic research.”

Our news correspondents obtained a quote from the research from Faculty of Business: “Neural networks have not only been a significant tool for economic study in recent years, but have also become an important topic of economics research, resulting in a large body of literature. The stock market is an important part of the country’s economic development, as well as our daily lives. Large dimensions and multiple collinearity characterize the stock index data. To minimize the number of dimensions in the data, multiple collinearity should be removed, and the stock price can then be forecast. To begin, a deep autoencoder based on the Restricted Boltzmann machine is built to encode high-dimensional input into low-dimensional space. Then, using a BP neural network, a regression model is created between low-dimensional coding sequence and stock price.”

According to the news reporters, the research concluded: “The deep autoencoder’s capacity to extract this feature is superior to that of principal component analysis and factor analysis, according to the findings of the experiments. Utilizing the coded data, the proposed model can lower the computational cost and achieve higher prediction accuracy than using the original high-dimensional data.”

For more information on this research see: An Efficient Method for Pricing Analysis Based on Neural Networks. Risks, 2022,10(151):151. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks10080151.

Our news editors report that more information may be obtained by contacting Yaser Ahmad Arabyat, Faculty of Business, Department of Economic and Finance, Al-Blaqa Applied University, Al Salt 19110, Jordan. Additional authors for this research include Ahmad Ali AlZubi, Dyala M. Aldebei, Samerra’a Ziad Al-oqaily.

(Our reports deliver fact-based news of research and discoveries from around the world.)