Modelling A.I. in Economics

PCG^C Stock: In a Bubble?

Outlook: Pacific Gas & Electric Co. 5% 1st Preferred Stock is assigned short-term Ba3 & long-term Baa2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Sell
Time series to forecast n: for Weeks2
Methodology : Modular Neural Network (Emotional Trigger/Responses Analysis)
Hypothesis Testing : Independent T-Test
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.


Pacific Gas & Electric Co. 5% 1st Preferred Stock prediction model is evaluated with Modular Neural Network (Emotional Trigger/Responses Analysis) and Independent T-Test1,2,3,4 and it is concluded that the PCG^C stock is predictable in the short/long term. A modular neural network (MNN) is a type of artificial neural network that can be used for emotional trigger/responses analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of emotional trigger/responses analysis, MNNs can be used to identify the emotional triggers that cause people to experience certain emotions, and to identify the responses that people typically exhibit when they experience those emotions. This information can then be used to develop more effective emotional support systems, to improve the accuracy of artificial intelligence systems, and to create more engaging and immersive entertainment experiences.5 According to price forecasts for 3 Month period, the dominant strategy among neural network is: Sell

Graph 14

Key Points

  1. What is Markov decision process in reinforcement learning?
  2. How can neural networks improve predictions?
  3. Operational Risk

PCG^C Stock Price Forecast

We consider Pacific Gas & Electric Co. 5% 1st Preferred Stock Decision Process with Modular Neural Network (Emotional Trigger/Responses Analysis) where A is the set of discrete actions of PCG^C stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.1,2,3,4


Sample Set: Neural Network
Stock/Index: PCG^C Pacific Gas & Electric Co. 5% 1st Preferred Stock
Time series to forecast: 3 Month

According to price forecasts, the dominant strategy among neural network is: Sell


F(Independent T-Test)6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Modular Neural Network (Emotional Trigger/Responses Analysis)) X S(n):→ 3 Month r s rs

n:Time series to forecast

p:Price signals of PCG^C stock

j:Nash equilibria (Neural Network)

k:Dominated move of PCG^C stock holders

a:Best response for PCG^C target price


A modular neural network (MNN) is a type of artificial neural network that can be used for emotional trigger/responses analysis. MNNs are made up of multiple smaller neural networks, called modules. Each module is responsible for learning a specific task, such as identifying sentiment in text or identifying patterns in data. The modules are then combined to form a single neural network that can perform multiple tasks. In the context of emotional trigger/responses analysis, MNNs can be used to identify the emotional triggers that cause people to experience certain emotions, and to identify the responses that people typically exhibit when they experience those emotions. This information can then be used to develop more effective emotional support systems, to improve the accuracy of artificial intelligence systems, and to create more engaging and immersive entertainment experiences.5 An independent t-test is a statistical test that compares the means of two independent samples. In an independent t-test, the data points in each sample are not related to each other. The independent t-test is a parametric test, which means that it assumes that the data is normally distributed. The independent t-test is also a two-sample test, which means that it compares the means of two independent samples.6,7

 

For further technical information as per how our model work we invite you to visit the article below: 

How do Predictive A.I. algorithms actually work?

PCG^C Stock Forecast (Buy or Sell) Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

Financial Data Adjustments for Modular Neural Network (Emotional Trigger/Responses Analysis) based PCG^C Stock Prediction Model

  1. Rebalancing refers to the adjustments made to the designated quantities of the hedged item or the hedging instrument of an already existing hedging relationship for the purpose of maintaining a hedge ratio that complies with the hedge effectiveness requirements. Changes to designated quantities of a hedged item or of a hedging instrument for a different purpose do not constitute rebalancing for the purpose of this Standard
  2. For the purpose of applying paragraphs B4.1.11(b) and B4.1.12(b), irrespective of the event or circumstance that causes the early termination of the contract, a party may pay or receive reasonable compensation for that early termination. For example, a party may pay or receive reasonable compensation when it chooses to terminate the contract early (or otherwise causes the early termination to occur).
  3. The fair value of a financial instrument at initial recognition is normally the transaction price (ie the fair value of the consideration given or received, see also paragraph B5.1.2A and IFRS 13). However, if part of the consideration given or received is for something other than the financial instrument, an entity shall measure the fair value of the financial instrument. For example, the fair value of a long-term loan or receivable that carries no interest can be measured as the present value of all future cash receipts discounted using the prevailing market rate(s) of interest for a similar instrument (similar as to currency, term, type of interest rate and other factors) with a similar credit rating. Any additional amount lent is an expense or a reduction of income unless it qualifies for recognition as some other type of asset.
  4. Paragraphs 6.9.7–6.9.13 provide exceptions to the requirements specified in those paragraphs only. An entity shall apply all other hedge accounting requirements in this Standard, including the qualifying criteria in paragraph 6.4.1, to hedging relationships that were directly affected by interest rate benchmark reform.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

PCG^C Pacific Gas & Electric Co. 5% 1st Preferred Stock Financial Analysis*

Rating Short-Term Long-Term Senior
Outlook*Ba3Baa2
Income StatementCaa2Baa2
Balance SheetBaa2Ba3
Leverage RatiosCaa2Ba1
Cash FlowBaa2Baa2
Rates of Return and ProfitabilityB2B2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

References

  1. S. Bhatnagar and K. Lakshmanan. An online actor-critic algorithm with function approximation for con- strained Markov decision processes. Journal of Optimization Theory and Applications, 153(3):688–708, 2012.
  2. Lai TL, Robbins H. 1985. Asymptotically efficient adaptive allocation rules. Adv. Appl. Math. 6:4–22
  3. V. Konda and J. Tsitsiklis. Actor-Critic algorithms. In Proceedings of Advances in Neural Information Processing Systems 12, pages 1008–1014, 2000
  4. Morris CN. 1983. Parametric empirical Bayes inference: theory and applications. J. Am. Stat. Assoc. 78:47–55
  5. M. J. Hausknecht and P. Stone. Deep recurrent Q-learning for partially observable MDPs. CoRR, abs/1507.06527, 2015
  6. Dimakopoulou M, Athey S, Imbens G. 2017. Estimation considerations in contextual bandits. arXiv:1711.07077 [stat.ML]
  7. R. Sutton and A. Barto. Introduction to reinforcement learning. MIT Press, 1998
Frequently Asked QuestionsQ: What is the prediction methodology for PCG^C stock?
A: PCG^C stock prediction methodology: We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) and Independent T-Test
Q: Is PCG^C stock a buy or sell?
A: The dominant strategy among neural network is to Sell PCG^C Stock.
Q: Is Pacific Gas & Electric Co. 5% 1st Preferred Stock stock a good investment?
A: The consensus rating for Pacific Gas & Electric Co. 5% 1st Preferred Stock is Sell and is assigned short-term Ba3 & long-term Baa2 estimated rating.
Q: What is the consensus rating of PCG^C stock?
A: The consensus rating for PCG^C is Sell.
Q: What is the prediction period for PCG^C stock?
A: The prediction period for PCG^C is 3 Month
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