Article ID: | iaor2009738 |
Country: | Netherlands |
Volume: | 179 |
Issue: | 2 |
Start Page Number: | 459 |
End Page Number: | 468 |
Publication Date: | Jun 2007 |
Journal: | European Journal of Operational Research |
Authors: | Wang Huiwen, Tse Wai Man, Liu Qiang, Mok Henry M.K., Fu Linghui |
Although Aitchison's method of logratio transformation of compositional data is widely used in various domains, it is limited by the assumption of a strict non-negativity of the components and the requirement of special treatments in practice of the zero components. We propose a dimension-reduction approach through a hyperspherical transformation that is capable of resolving the difficulty in maintaining non-negativity and unit-sum in forecasting compositional data over time.