Ordinal Multicriteria Classification Algorithm for Investment Profiles Assessment

NexClass is a Decision Support System which was introduced to support multicriteria classification of alternatives into predefined non-ordered categories. It was mainly used for decision support in financial domain and segmentation problems. This paper presents an extension of NexClass DSS to ordinal classification problems related to investment profiles. For each category a threshold is defined, which indicates its limit level with respect to the evaluation criteria. Then, assignment to classes is based on the concept of non-exclusivity, that defines at what degree a data tuple or alternative can be included into a specific category. Alternatives are assessed on the evaluation criteria, and non-excluding degrees are calculated for each class. Finally, an alternative is assigned to the class for which non-excluding degree gets the lowest value. The NexClass DSS implements the above classification algorithm, providing a user-friendly interface. In the paper we demonstrate the theory and the model as well as the DSS usage in a classification problem related to investment profiles.