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| The Theory of Fuzzy Logic and its
Application to Real Estate Valuation Author: Carlo Bagnoli and Halbert C. Smith Start Page: 169 Abstract: Fuzzy logic is based
on the central idea that in fuzzy sets each element in the set can assume a value from 0
to 1, not just 0 or 1, as in classic set theory. Thus, qualitative characteristics and
numerically scaled measures can exhibit gradations in the extent to which they belong to
the relevant sets for evaluation. This degree of membership of each element is a measure
of the element’s "belonging" to the set, and thus of the precision with
which it explains the phenomenon being evaluated. Fuzzy sets can be combined to produce
meaningful conclusions, and inferences can be made, given a specified fuzzy input
function. The article demonstrates the application of fuzzy logic to an income-producing
property, with a resulting fuzzy set output. |
