Abstract:
Many forecasting models based on the concept of fuzzy time series have been
proposed in the past decades. In recent years, many researchers have used fuzzy time
series to handle forecasting various domain problems and it has been shown to
forecast better than other models such as the predictions of stock prices, academic
enrollments, weather, road accident casualties, etc. However, two main factors, which
are the lengths of intervals and the content of forecast rules, impact the forecasted
accuracy of the models. This paper presents a simple fuzzy set theory and fuzzy time
series forecasting method of order three towards Malaysian government tax revenue
which uses a time variant difference parameter on current state to forecast the next
state. Based on the relationship, the forecast of the government tax revenues is
generated in fuzzy terms, such as: 'moderate value', 'poor value', 'excellent value'
and etc. The accuracy of using the different number of fuzzy sets on the prediction of
the government tax revenue has shown and compared in this paper.
