Presented by: Derek Kane

 Introduction to Fourier Analysis

 Fourier Transform
 Time Series Modeling
 Practical Application Example
 Supply Chain Management

Joseph Fourier – French Mathematician and physicist born

in 1768 for whom the Fourier transform and Fourier’s Law
were named after. Fourier is also generally credited with
the discovery of the greenhouse effect.
 Fourier analysis is a mathematical method used to
break down and transform a periodic function —
i.e., a mathematical relationship between a
quantity and a variable or variables whose relative
values consistently repeat over some regular
period of time — into a set of simpler functions
which can then be summed and transformed back
into the original form. Invented in the early 19th
century, French physicist and mathematician Jean
Baptiste Joseph Fourier transformed the partial
differentiation equation representing the
propagation of heat into a series of simpler
trigonometric wave functions — i.e., sines and
cosines — that could be superimposed to
reconstitute the original function, thereby
providing a simpler, general solution to the
problem.

 Today, Fourier analysis is used to analyze and

better understand a wide range of natural and
man-made processes and phenomena. It has
been applied to a wider variety of problems in the
physical and natural sciences and in engineering,
including quantum mechanics, acoustics, electrical
engineering, image and signal processing,
neurology, optics, and oceanography.
 A Fourier analysis begins with a Fourier transform, which breaks
down, or decomposes, a single, more complicated periodic
wave function into a set of simpler elements called a Fourier
series that takes the form of sine and cosine waves or complex
exponential equations. These can then be solved using simpler
mathematics and superimposed, or recombined, to yield a
solution to the original function via linear combination.
Narrowly defined, Fourier analysis refers to the process of
decomposing the original function into a series of simpler
components. More generally, it can also include Fourier
synthesis, the process by which the original function is
reconstituted by performing an inverse transform that
essentially runs the Fourier analysis in reverse.

 Improved, expanded upon, and the core of what has come to

be known as the field of harmonic analysis, Fourier analysis has
evolved and progressed to include the study of more abstract
and general phenomena. Fourier analysis is now used actively,
regularly, and widely in econometrics and financial markets
theory by researchers and practitioners to forecast, as well as
analyze and better understand, the nature and behavior of a
wide range of time series data and parameters that exhibit
non-linear relationships and repeating, wave-like patterns over
time. Among its many applications, it has been used to model
long-term economic cycles, the relationship between inflation
and the demand for money, and patterns and trends in the
stock, foreign exchange, and housing markets, and cycles in
the semiconductor industry, as well as to measure the efficiency
of a national economy.
  Bio-inspired computing takes a more
evolutionary approach to learning.

 In traditional AI, the intelligence is often

programmed from above. The
Programmer creates the program and
imbues it with its intelligence.

 Bio-inspired computing, on the other

hand, takes a more bottom-up,
decentralized approach.

 Bio-inspired computing often involve the

method of specifying a set of simple rules,
DARPA - Legged Squat Support System (LS3) a set of simple organisms which adhere to
those rules.
Here are some applications of Fourier Analysis:

 Signal Processing
 Option Pricing

 Number Theory

 Statistics / Probability Theory

 Harmonic Analysis

 Image Processing
Outline of the leaf at right, summarized using 1,
5, and 10 harmonics (elliptic Fourier analysis
carried out using EFAWIN on outline data
obtained with TPSDIG; both programs - and
many others - can be downloaded from the
Morphometrics Website).
FFTs are useful as a high-pass to remove low-
frequency periodic variations (e.g. hourly, daily,
weekly) and then you can back-transform to the
time domain and use that as input for your
monitoring tools.
FFTs are useful as a high-pass to remove low-
frequency periodic variations (e.g. hourly, daily,
weekly) and then you can back-transform to the
time domain and use that as input for your
monitoring tools.
 The knapsack problem can be thought of as the
following:

 “You are going to spend a month in the

wilderness. You’re taking a backpack with you,
however, the maximum weight it can carry is 20
kilograms. You have a number of survival items
available, each with its own number of “survival
points”. You’re objective is to maximize the
number of survival points.”

 This type of problem is called a constrained

optimization problem because we are limited to
carrying a maximum weight of 20 kilograms.

 Our goal is to devise:

 A genetic algorithm to approach solving the
knapsack problem.
 In order to better prepare the analysis, we must first understand the data we are working with.

Each row will be encoded into a

chromosome bitstring. A single row
represents a single value in the
bitstring.

 There are 7 row entries in our chromosome and a 0 will represent “do not include” and 1
represents “include”.

 Therefore, an example of a chromosome would be “1001011”

 Here is the code to create the dataset:

 This will show us how to create a chromosome to include the first, fourth, and fifth item.
 The genalg algorithm tries to optimize towards the minimum value. Therefore, the
value is calculated as above and multiplied with -1.

 A configuration which leads to exceeding the weight constraint returns a value of 0 (a

higher value can also be given).
 Next, we choose the number of iterations, design and run the model.

 Notice that within the settings of genalg, the type is a binary chromosome by default:

Optimal Knapsack Configuration

 Reside in Wayne, Illinois
 Active Semi-Professional Classical Musician
(Bassoon).
 Married my wife on 10/10/10 and been
together for 10 years.
 Pet Yorkshire Terrier / Toy Poodle named
Brunzie.
 Pet Maine Coons’ named Maximus Power and
Nemesis Gul du Cat.
 Enjoy Cooking, Hiking, Cycling, Kayaking, and
Astronomy.
 Self proclaimed Data Nerd and Technology
Lover.
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pitfalls-towards-trading/
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