A Fuzzy Time Series Model to Forecast the BDI

Fuzzy time series models has been applied to forecast various problems and have been shown to forecast better than other models. In this article, we intend to apply Chou and Lee's fuzzy time series model to forecast the Baltic Dry Index (BDI) index for the next month. The root mean square error is one criteria to evaluate the forecasting performance. Empirical results show that the fuzzy time series model is suitable for the BDIpsilas prediction.