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Deep learning with long short-term memory neural networks combining wavelet transform and principal component analysis for daily urban water demand forecasting

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TLDR
Wang et al. as discussed by the authors proposed a hybrid long short-term memory model combining with discrete wavelet transform (DWT) and principal component analysis (PCA) pre-processing techniques for water demand forecasting, i.e., DWT-PCA-LSTM.
Abstract
A reliable and accurate urban water demand forecasting plays a significant role in building intelligent water supplying system and smart city. Due to the high frequency noise and complicated relationships in water demand series, forecasting the urban water demand is not an easy task. In order to improve the model’s abilities in handling the complex patterns and catching the peaks in time series, we propose a hybrid long short-term memory model combining with discrete wavelet transform (DWT) and principal component analysis (PCA) pre-processing techniques for water demand forecasting, i.e., DWT-PCA-LSTM. First, the outliers of water demand series are identified and smoothed by 3σ criterion and weighted average method, respectively. Then, the noise component of water demand series is eliminated by DWT method and the principal components (PCs) among influencing factors of water demand are selected by PCA method. In addition, two LSTM networks are built to yield the daily urban water demand predictions using the results of DWT and PCA techniques. At last, the superiorities of the proposed model are demonstrated by comparing with the other benchmark predictive models. The water demand from 2016 to 2020 of a waterworks located in Suzhou, China is used for the experiment. The predictive performance of the experiments are evaluated by the mean absolute percentage error (MAPE), mean absolute percentage errors of peaks (pMAPE), explain variance score (EVS) and correlation coefficient (R). The results show that the DWT-PCA-LSTM model outperforms the other models and has satisfactory performance both in catching the peaks and the average prediction accuracy.

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Citations
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Proportional integral derivative booster for neural networks-based time-series prediction: Case of water demand prediction

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References
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Deep learning

TL;DR: Deep learning is making major advances in solving problems that have resisted the best attempts of the artificial intelligence community for many years, and will have many more successes in the near future because it requires very little engineering by hand and can easily take advantage of increases in the amount of available computation and data.
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Deep learning with long short-term memory networks for financial market predictions

TL;DR: This work deploys LSTM networks for predicting out-of-sample directional movements for the constituent stocks of the S&P 500 from 1992 until 2015 and finds one common pattern among the stocks selected for trading – they exhibit high volatility and a short-term reversal return profile.
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Mean Absolute Percentage Error for regression models

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Forecasting stock markets using wavelet transforms and recurrent neural networks: An integrated system based on artificial bee colony algorithm

TL;DR: An integrated system where wavelet transforms and recurrent neural network (RNN) based on artificial bee colony (abc) algorithm are combined for stock price forecasting is presented and can be implemented in a real-time trading system for forecasting stock prices and maximizing profits.
Journal ArticleDOI

Probabilistic individual load forecasting using pinball loss guided LSTM

TL;DR: A probabilistic load forecasting method for individual consumers is proposed to handle the variability and uncertainty of future load profiles, using a deep neural network, long short-term memory (LSTM), to model both the long-term and short- term dependencies within the load profiles.
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