ABSTRACT
This chapter presents the mathematics of fuzzy set theory in order to provide a basis for developing a model for AMT investment decision making. Although some readers may find this chapter difficult, it is not necessary to understand all the detailed mathematical analyses in order to follow the main arguments. Less mathematically inclined readers should read the introductory section (Basics o f Fuzzy Sets) to gain a general understanding of what is meant by a fuzzy set. This section introduces the mathematical definition of a fuzzy set (equation 6 .1) and the meaning of this can be intuitively grasped through the examples given (A, B and C to represent low, medium and high production output). A further example, of a real number ‘close to 10’ is illustrated and , again, this should help the reader to clarify what is meant by a ‘fuzzy set’. Two sub-sections (Basic Fuzzy Set Concepts and The Main Operations on Fuzzy Sets) introduce some basic concepts that underpin the mathematics of fuzzy sets.
