2006 Volume 14 Issue 3 Pages 87-93
Economic data involve large numbers of variables and show irregular movement over time, making quantification and estimation difficult. Time-serial changes in a large number of variables can be likened to the functioning of the human body. The MT system was therefore applied on a trial basis to corporate financial data, which can be viewed as expressing corporate health. Because financial data take on both positive and negative values, a Schmidt orthogonal expansion was necessary, so the TS method (which forms part of the MT system) was used with operating profit as the target variable. The results demonstrated the feasibility of estimating profits by the TS method, and of indicating the estimation error by the S/N ratio.
