This paper focuses mainly on issues related to the pricing of American options under a fuzzy environment by taking into account the clustering of the underlying asset price volatility, leverage effect and stochastic jumps. By treating the volatility as a parabolic fuzzy number, we constructed a Levy-GJR-GARCH model based on an infinite pure jump process and combined the model with fuzzy simulation technology to perform numerical simulations based on the least squares Monte Carlo approach and the fuzzy binomial tree method. An empirical study was performed using American put option data from the Standard & Poor's 100 index. The findings are as follows: under a fuzzy environment, the result of the option valuation is more precise than the result under a clear environment, pricing simulations of short-term options have higher precision than those of medium- and long-term options, the least squares Monte Carlo approach yields more accurate valuation than the fuzzy binomial tree method, and the simulation effects of different Levy processes indicate that the NIG and CGMY models are superior to the VG model. Moreover, the option price increases as the time to expiration of options is extended and the exercise price increases, the membership function curve is asymmetric with an inclined left tendency, and the fuzzy interval narrows as the level set α and the exponent of membership function n increase. In addition, the results demonstrate that the quasi-random number and Brownian Bridge approaches can improve the convergence speed of the least squares Monte Carlo approach.

It is the key concern for service providers that how a web service stands out among functionally similar services. QoS is a distinct and decisive factor in service selection among functionally similar services. Therefore, how to design services to meet customers' QoS requirements is an urgent problem for service providers. This paper proposes an approach using QFD (Quality Function Deployment) which is a quality methodology to transfer services' QoS requirements into services' design attribute characteristics. Fuzzy set is utilized to deal with subjective and vague assessments such as importance of QoS properties. TCI (Technical Competitive Index) is defined to compare the technical competitive capacity of a web service with those of other functionally similar services in the aspect of QoS. Optimization solutions of target values of service design attributes is determined by GA (Genetic Algorithm) in order to make the technical performance of the improved service higher than those of any other rival service products with the lowest improvement efforts. Finally, we evaluate candidate improvement solutions on cost-effectiveness. As the output of QFD process, the optimization targets and order of priority of service design attributes can be used as an important basis for developing and improving service products.

The development of the electricity market enables us to provide electricity of varied quality and price in order to fulfill power consumers' needs. Such customers choices should influence the process of adjusting power generation and spinning reserve, and, as a result, change the structure of a unit commitment optimization problem (UCP). To build a unit commitment model that considers customer choices, we employ fuzzy variables in this study to better characterize customer requirements and forecasted future power loads. To measure system reliability and determine the schedule of real power generation and spinning reserve, fuzzy Value-at-Risk (VaR) is utilized in building the model, which evaluates the peak values of power demands under given confidence levels. Based on the information obtained using fuzzy VaR, we proposed a heuristic algorithm called local convergence-averse binary particle swarm optimization (LCA-PSO) to solve the UCP. The proposed model and algorithm are used to analyze several test systems. Comparisons between the proposed algorithm and the conventional approaches show that the LCA-PSO performs better in finding the optimal solutions.

This paper proposes the concept of information retrieval for fine arts database system on the fuzzy set theory, especially concerning to sensitive impression and location data. The authors have already reported several important formulations about the data structure and information retrieval models based on the fuzzy set theory for multimedia database. The fuzzy models of the information retrieval are implemented in the fine arts database system, which has the following features: (1) The procedure of information retrieval is formulated in the fuzzy set theory; (2) This database can treat multimedia data such as document data, sensitive impression, location information, and imagedata. (3) It is possible to retrieve the stored data based on sensitive impression and the location data such as "joyful pictures which have a mountain in the center and there is a tree in the right"; (4) Users can input impression words as a retrieval condition, and estimate their grades such as "low," "medium," and "high"; (5) For the result of information retrieval, the satisfaction grade is calculated based on fuzzy retrieval model; and (6) The stored data are about 400 fine arts paintings which are inserted by the textbook of fine arts currently used at the junior high school and high school in Japan. These features of this system give an effects of the fine arts education, and should be useful for information retrieval of fine arts. The results of this study will become increasingly important in connection with development of multimedia technology.