You are given an Expert System with the following rules: R1: IF interest rates fall, THEN bond
Question:
You are given an Expert System with the following rules:
R1: IF interest rates fall, THEN bond prices will increase.
R2: IF interest rates increase, THEN bond prices will decline.
R3: IF interest rates are unchanged, THEN bond prices will remain unchanged.
R4: IF the dollar rises (against other currencies), THEN interest rates will decline.
R5: IF the dollar falls, THEN interest rates will increase.
R6: IF bond prices decline, THEN buy bonds.
a. A client has just observed that the dollar exchange rate is falling. He wants to know whether to buy bonds. Run forward chaining and backward chaining, and submit a report of your findings to him.
b. Prepare an inference tree for the backward chaining you did.
c. A second client has observed that interest rates are unchanged. She asks for advice on investing in bonds. What will the ES tell her? Use forward chaining to figure it out.
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman