A study of the grey relational model of interval numbers for panel data

Abstract

Purpose

This paper aims to deal with the grey relational problem of panel data with an attribute value of interval numbers. The grey relational model of interval number for panel data is constructed in this paper.

Design/methodology/approach

First, three kinds of interval grey relational operators for the behavior sequence of a dimensionless system are proposed. At the same time, the positive treatment method of interval numbers for cost-type and moderate-type indicators is put forward. On this basis, the correlation between the three-dimensional interval numbers of panel data is converted into the correlation between the two-dimensional interval numbers in time series and cross-sectional dimensions. The grey correlation coefficients of each scheme and the ideal scheme matrix are calculated in the two dimensions, respectively. Finally, the correlation degree of panel interval number and scheme ordering are obtained by arithmetic mean.

Findings

This paper proves that the grey relational model of the panel interval number still has the properties of normalization, uniqueness and proximity. It also avoids the problem that the results are not unique due to the different orders of objects in the panel data.

Practical implications

The effectiveness and practicability of the model is verified by taking supplier selection as an example. In fact, this model can also be widely used in agriculture, industry, society and other fields.

Originality/value

The accuracy of the relational results is higher and more accurate compared with the previous studies.

Citation

Yin, K., Xu, T., Li, X. and Cao, Y. (2021), "A study of the grey relational model of interval numbers for panel data", Grey Systems: Theory and Application, Vol. 11 No. 1, pp. 200-211. https://doi.org/10.1108/GS-02-2020-0021