Evaluation and checking nonresponse data by soft computing approaches - case of business and trade statistics
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1 Evaluation and checking nonresponse data by soft computing approaches - case of business and trade statistics Miroslav Hudec, Jana Juriová INFOSTAT Institute of Informatics and Statistics Brussels, 7. March, 2013
2 Presentation roadmap 1. Introduction 2. Evaluation how current algorithms estimate missing values by fuzzy logic 3. New approach for estimation of missing values by neural networks 4. Further research topics 2
3 Database Administrative data Surveys company Attr 1 attr 2 attr 3 attr 4 attr 5 attr n Id medium high Id small Id 3 not too missing small Id high missing Id m Very high could cope with this data as well 1. Evaluation how current algorithms estimate missing values by fuzzy logic 2. New approach for estimation of missing values by neural networks 3
4 Fuzzy logic- Evaluation If estimated values in Intrastat database have more or less similar properties such as data received from respondents then we could say that the algorithms for data imputation do not need improvements. Intrastat database tables (SK) contain two parts: data obtained from respondents and data estimated due to mising values. It means same tables structure and one column indicating if row (trade) is collected or estimated. Miroslav Hudec, INFOSTAT Slovakia 4
5 Fuzzy logic - Evaluation A usual (crisp) rule describing evaluated property is either fully satisfied or fully rejected. If a rule is rejected, we are not sure whether the rule is about to be satisfied or whether the data are far away from the rule condition. Fuzzy rules are different. A fuzzy rule is able to capture statisticians knowledge which is often expressed by ambiguities and uncertainties (linguistic terms and quantifiers) and directly apply on databases. A fuzzy rule has a degree of truth, which is a value from the [0, 1] interval. Truth value indicates how strongly data meet the rule condition. Miroslav Hudec, INFOSTAT Slovakia 5
6 Fuzzy logic - Fuzzy rules most of (about half, few) responded exports has small (medium, high) number of items (goods) in report most of (about half, few) non responded exports has small (medium, high) number of items (goods) in report Quantifiers Linguistic terms If truth values of both rules gravitate to each other, then both parts of database have similar properties. The current algorithm properly. works Miroslav Hudec, INFOSTAT Slovakia 6
7 Fuzzy logic - Case study For the case study anonymised data on the Intra-EU (Intrastat) trade were provided by the Statistical Office of the Slovak Republic. Data of Intrastat survey was used for year 2009 from one detailed Intrastat form a form for dispatch of goods. Database contains one attribute which indicates whether the row is describing realised trade either collected or estimated. It helps to evaluate rules easier, because the structure of database is the same for real and estimated values. Miroslav Hudec, INFOSTAT Slovakia 7
8 Fuzzy logic- Interface Miroslav Hudec, INFOSTAT Slovakia 8
9 Fuzzy logic - Example 1 most of non-responded exports has small number of items in report The truth value of rule is most of responded exports has small number of items in report The truth value of rule is We could conclude that distribution is quite different for both cases and algorithm should be improved. If we use this rule in data analysis we could conclude that most our exports has small number of items in reports. Miroslav Hudec, INFOSTAT Slovakia 9
10 Fuzzy logic - Example 2 The second kind of rule is distribution of countries of dispatch. Rules: export by countries has high (medium, small) number of reports Countries with high number of reports surveyed data High number Country of reports AT 1 CZ 1 DE 1 HU 1 PL 1 FR 0,9533 IT 0,777 RO 0,3277 SI 0,1222 NL 0,0449 GB 0,0394 BE 0,0137 Countries with high number of reports estimated data Country High number of reports AT 1 CZ 1 DE 1 FR 1 GB 1 HU 1 IT 1 PL 1 SI 0,236 ES 0,126 RO 0,0623 Similar distributions algorithm works properly Strength of fuzzy rule is obvious in case of FR, IT, SI. Crisp case might lead to conclusion that used algorithm for estimation of values should be improved. Miroslav Hudec, INFOSTAT Slovakia 10
11 Fuzzy logic - Beyond Blue-ETS Data analysis, rules evaluation Analysing respondents behaviour in order to find critical group of respondents. Reveal dependencies among trade indicators e.g. most companies which belong to branch i (according to the classification NACE) have small non-response Dissemination on websites Providing users tool capable of giving answers to their imprecise questions. Websites could solve more users demands and therefore improve image of NSIs. Is stronger proposition: about half of municipalities have altitude above sea level around 700 m and small pollution or few municipalities have altitude above sea level around 700 m and small pollution? Miroslav Hudec, INFOSTAT Slovakia 11
12 Neural networks - Motivation Neural networks can deal efficiently with huge databases and are frequently used for classification problems when the borders of classes are not exactly defined. The advantages of this technique can be taken also by statistical institutes that have been collecting and storing vast amount of data. Jana Juriová, INFOSTAT Slovakia 12
13 Neural networks - Approach An attempt to research usage of neural networks approach in the field of official statistics to decrease response burden and improve data analysis. Imputation of missing values in Intrastat data system application of proposed classification approach using more classification items Main goal: To test the ability of neural networks to classify data in cases of incomplete statistical datasets. Jana Juriová, INFOSTAT Slovakia 13
14 Neural networks - Algorithm Neural network is a computational model from the category of soft computing methods, based on the abstraction of biological neural systems. The steps of proposed neural network algorithm: 1. Dividing data into training and validating sets. 2. Allocation of training dataset into 2 classes 1 means that unit belongs to the class, 0 means that unit does not belong to the class. 3. Creating the neural network. 4. Training the neural network with an optimization algorithm. 5. Classification of validating dataset into classes by means of the trained neural network. Feed-forward neural network: Jana Juriová, INFOSTAT Slovakia 14
15 Neural networks - Imputation in Intrastat database Intrastat database data on foreign trade anonymised data provided by SO SR from detailed declarations for dispatches of goods year 2008 The exemption threshold is set for dispatches of goods to EUR, after reaching this value the company has to fulfil declaration. After exceeding simplification threshold of EUR, the company is obliged to give detailed declaration. Individual business reports contain several items characterising their activity. In this experiment only the first reports were regarded, i.e. those revised or corrected that were sent later were not included at all. The characteristics considered useful were the following 8 items: time period (month), code of goods (simplified, i.e. three-digit level), invoiced value, region of dispatch, state of destination, delivery terms, nature of transaction and mode of transport Jana Juriová, INFOSTAT Slovakia 15
16 Neural networks - Imputation in Intrastat database The main objective is to use classification by means of neural networks for imputation of missing data in Intrastat data system. NN was trained on the complete dataset for classification into classes. After reaching an acceptable degree of accuracy the network can be used for the classification of the rest of database with missing values. NN identifies the most similar class for each statistical unit and this enables imputation of missing values. CN OB DD DP FS REGP STU DOA Complete dataset Jana Juriová, INFOSTAT Slovakia DOA Nature of transaction 2 classes: Operations with a view to processing under contract (DOA4) Operations following processing under contract 16
17 Neural networks - Imputation in Intrastat database Evaluation of the learning process Characteristics of the learning process Type of transaction Probability of inclusion into the class (%) RMSE* 10 hidden neurons, 300 training cycles 10 hidden neurons, 400 training cycles 15 hidden neurons, 1000 training cycles * Root Mean Square Error DOA DOA DOA DOA DOA DOA Results: After the network has been trained the best one was used for the classification of the original data to verify the proposed classifier. The validating set consists of 2000 units coming from the class DOA5. The probability of inclusion into the class DOA5 proved to be 76.8%. This confirmed the ability to use the trained network for suggesting the missing values. Jana Juriová, INFOSTAT Slovakia 17
18 Neural networks - To summarize a properly designed neural network enables classification of large datasets on the basis of similarity and can solve the problem of missing values; Neural networks proved to be useful as an alternative approach for imputation of missing values in large statistical databases. However, the first experimental results on Intrastat database indicate that this approach needs further improvements and testing with special focus to the searching algorithm to increase classification rate. Jana Juriová, INFOSTAT Slovakia 18
19 Further research Any introduction of new methods for the purpose of missing values imputation at the NSIs needs further research of variance estimation of proposed values. In the first step neural networks will estimate missing values. In the next step fuzzy rules will evaluate estimated values. If significant difference appears then neural networs will be re-trained for better estimation. Jana Juriová, INFOSTAT Slovakia 19
20 Conclusion Approaches for evaluation of non-responses by soft computing could improve the quality of collected data and therefore released data by NSIs. Additional benefits could be obtained from integration of these two approaches. Without significant modifications fuzzy logic could be applied also in other stages of data production (e.g. dissemination). 20
21 Thank you for your attention.
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