(Ebook) Data Science and Innovations for Intelligent Systems: Computational Excellence and Society 5.0 (Demystifying Technologies for Computational Excellence) by Kavita Taneja (editor), Harmunish Taneja (editor), Kuldeep Kumar (editor), Arvind Selwal (editor), Eng Lieh Ouh (editor) ISBN 9780367676278, 0367676273 - The full ebook with all chapters is available for download
(Ebook) Data Science and Innovations for Intelligent Systems: Computational Excellence and Society 5.0 (Demystifying Technologies for Computational Excellence) by Kavita Taneja (editor), Harmunish Taneja (editor), Kuldeep Kumar (editor), Arvind Selwal (editor), Eng Lieh Ouh (editor) ISBN 9780367676278, 0367676273 - The full ebook with all chapters is available for download
com
OR CLICK BUTTON
DOWLOAD EBOOK
https://ebooknice.com/product/vagabond-vol-29-29-37511002
ebooknice.com
(Ebook) Biota Grow 2C gather 2C cook by Loucas, Jason; Viles, James ISBN
9781459699816, 9781743365571, 9781925268492, 1459699815, 1743365578, 1925268497
https://ebooknice.com/product/biota-grow-2c-gather-2c-cook-6661374
ebooknice.com
https://ebooknice.com/product/boeing-b-29-superfortress-1573658
ebooknice.com
https://ebooknice.com/product/29-single-and-nigerian-53599780
ebooknice.com
(Ebook) Jahrbuch für Geschichte: Band 29 ISBN 9783112622223, 3112622227
https://ebooknice.com/product/jahrbuch-fur-geschichte-band-29-50958290
ebooknice.com
https://ebooknice.com/product/harrow-county-29-53599548
ebooknice.com
https://ebooknice.com/product/organometallic-chemistry-volume-29-2440106
ebooknice.com
https://ebooknice.com/product/analysis-of-legal-argumentation-documents-a-
computational-argumentation-approach-translational-systems-sciences-29-44646302
ebooknice.com
https://ebooknice.com/product/communication-yearbook-29-5293350
ebooknice.com
DATA SCIENCE AND
INNOVATIONS FOR
INTELLIGENT SYSTEMS
Demystifying Technologies for Computational
Excellence: Moving Towards Society 5.0
Series Editors: Vikram Bali and Vishal Bhatnagar
This series encompasses research work in the field of Data Science, Edge Computing, Deep
Learning, Distributed Ledger Technology, Extended Reality, Quantum Computing,
Artificial Intelligence, and various other related areas, such as natural-language processing
and technologies, high-level computer vision, cognitive robotics, automated reasoning,
multivalent systems, symbolic learning theories and practice, knowledge representation and
the semantic web, intelligent tutoring systems, AI and education.
The prime reason for developing and growing out this new book series is to focus on the
latest technological advancements-their impact on the society, the challenges faced in im-
plementation, and the drawbacks or reverse impact on the society due to technological
innovations. With the technological advancements, every individual has personalized access
to all the services, all devices connected with each other communicating amongst them-
selves, thanks to the technology for making our life simpler and easier. These aspects will
help us to overcome the drawbacks of the existing systems and help in building new systems
with latest technologies that will help the society in various ways proving Society 5.0 as one
of the biggest revolutions in this era.
Edited by
Kavita Taneja, Harmunish Taneja
Kuldeep Kumar, Arvind Selwal, and
Eng Lieh Ouh
MATLAB® is a trademark of The MathWorks, Inc. and is used with permission. The
MathWorks does not warrant the accuracy of the text or exercises in this book. This book’s
use or discussion of MATLAB® software or related products does not constitute
endorsement or sponsorship by The MathWorks of a particular pedagogical approach or
particular use of the MATLAB® software.
First edition published 2022
by CRC Press
6000 Broken Sound Parkway NW, Suite 300, Boca Raton, FL 33487-2742
and by CRC Press
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
© 2022 selection and editorial matter, Kavita Taneja, Harmunish Taneja, Kuldeep Kumar,
Arvind Selwal and Eng Ouh Lieh; individual chapters, the contributors
CRC Press is an imprint of Taylor & Francis Group, LLC
Reasonable efforts have been made to publish reliable data and information, but the author
and publisher cannot assume responsibility for the validity of all materials or the
consequences of their use. The authors and publishers have attempted to trace the copyright
holders of all material reproduced in this publication and apologize to copyright holders
if permission to publish in this form has not been obtained. If any copyright material has not
been acknowledged please write and let us know so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted,
reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other
means, now known or hereafter invented, including photocopying, microfilming, and
recording, or in any information storage or retrieval system, without written permission
from the publishers.
For permission to photocopy or use material electronically from this work, access
www.copyright.com or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood
Drive, Danvers, MA 01923, 978-750-8400. For works that are not available on CCC please
contact [email protected]
Trademark notice: Product or corporate names may be trademarks or registered trademarks
and are used only for identification and explanation without intent to infringe.
DOI: 10.1201/9781003132080
Typeset in Times
by MPS Limited, Dehradun
Contents
Editors ......................................................................................................................vii
Contributors ..............................................................................................................ix
v
vi Contents
Index......................................................................................................................365
Editors
Kuldeep Kumar works at the Department of Computer Science and Engineering,
National Institute of Technology Jalandhar, India. He received his Ph.D. degree in
computer science from the National University of Singapore in 2016. Prior to
joining the institute, he worked for two years in the Birla Institute of Technology
and Science, Pilani, India. He received his Ph.D. in computer science from the
School of Computing, National University of Singapore (NUS SoC), Singapore in
2016. He has several publications in reputed international journals/conferences.
https://orcid.org/0000-0003-1160-9092
Eng Lieh Ouh received his Ph.D. in computer science (software engineering) from
the National University of Singapore. He is involved in several large-scale infor-
mation technology industry projects for a decade at IBM Singapore and Sun
Microsystems before joining academia as an educator. His research areas are software
reuse, software architecture design, design thinking, and software analytics. He has
experiences delivering courses for the postgraduate students, undergraduate students, and
industry participants in the software engineering areas including design thinking, practical
software architecture design, security engineering, and mobile development. He received
multiple teaching excellence awards and industry projects recognition awards throughout
his career. https://orcid.org/0000-0001-7759-348X
vii
viii Editors
Michael Boguslavsky is presently the head of AI and is leading the AI team developing
ML credit analytics for a start-up trade finance platform. The team builds predictive
models for SME credit risk and develops trade credit event prediction models based on
supply chain graph flows analysis. Prior to this he was an advisor for Blackstone
Alternative Asset Management, advising the leading alternative asset manager on fund
structuring, portfolio optimization, risk modelling, and placement for alternative, private,
and illiquid credit, hedge funds, infrastructure, and emerging market debt funds. He has
also worked in banks and asset management companies over 15 years as acting head of
EMEA Equity Derivatives Structuring and head of ALM and Quantitative Analytics, as
well as being a trader and quantitative analyst. He holds a Ph.D. in mathematics from the
University of Amsterdam; a Ph.D. in computer sciences from the Russian Academy of
Sciences, Moscow; and a master’s degree in mathematics and applied mathematics.
https://orcid.org/0000-0001-8423-9403
Amit Chadgal completed the M.Tech. in 2020 at the Department of Computer Science
and Technology, Central University of Jammu. Prior to M.Tech., he completed a B.
Tech. in 2018 at the Department of Information Technology, National Institute of
Technology Srinagar, India. The research topic of his M. Tech. was “light-weight
cryptography techniques in IoT” at the Department of Computer Science and
Technology, Central University of Jammu. https://orcid.org/0000-0002-9013-308X
ix
x Contributors
Anu Gupta, has been working as a professor in computer science and applications
at the Panjab University, Chandigarh since July 2015, where she has been working as
a faculty member since 1998. She has the experience of working on several platforms
using a variety of development tools and technologies. Her research interests include
open-source software, software engineering, cloud computing, and data mining. She
is a life member of the “Computer Society of India” and “Indian Academy of
Science.” She has published more than 25 research papers in various journals and
conferences. https://orcid.org/0000-0002-1403-5023
was subsequently ported to a physical Quantum arcade machine and toured around
Europe, including the EU Quantum Flagship Event in Helsinki in October 2019. He is
a Ph.D. candidate in experimental low temperature physics at the National University
of Singapore. https://orcid.org/0000-0001-7896-0595
Stan Jarzabek received a M.Sc. and Ph.D. from Warsaw University. He has been a
professor at Bialystok University of Technology since 2015; in 1992–2015 he was
an associate professor at the Department of Computer Science, National University
of Singapore; in 1990–92 he was a research manager of CSA Research Ltd in
Singapore. Before, Stan taught at McMaster University, Canada, and worked for an
industrial research institute in Warsaw. Stan’s research interest is software engineering
(software reuse and maintenance), and in recent years mHealth – the use of mobile
technology for psychotherapy support, patient monitoring, and data collection/analysis.
https://orcid.org/0000-0002-7532-3985
S. Jaya is current Ph.D. research scholar (Full Time) in the Department of Computer
Science at Sri Sarada college for Women (Autonomous), Salem-16, Tamilnadu, India.
She has published three papers and one chapter in IGI Global. Her area of interest is
digital image processing. https://orcid.org/0000-0003-0361-8052
Aman Khera received his Ph.D. (Business Laws) from Panjab University, Chandigarh
in the year 2014 and Ph.D. (Business Management & Commerce) from Panjab
University, Chandigarh in the year 2018. He did his MBA (HRM) at Punjab Technical
University in the year 2004 and LLB at Panjab University Chandigarh in the year 2009
and LLM at Kurukshetra University, Kurukshetra in the year 2011. He has seven years
of corporate experience in HR. He has published 23 research papers in both national and
international journals and has presented various papers at national and international
conferences. He has guided one Ph.D. student and is guiding two Ph.D. students.
Presently he is working as an assistant professor in University Institute of Applied
Management Sciences (UIAMS), Panjab University, Chandigarh since 2011. His area of
specialization is HRM and business law. https://orcid.org/0000-0003-4909-2332
Palvinder Singh Mann received his bachelor’s degree (B.Tech.) with honors
(Institute Gold Medal) in information technology from Kurukshetra University,
Kurukshetra, Haryana, India, M.Tech. in computer science and engineering from IKG
Punjab Technical University, Jalandhar, Punjab, India, and Ph.D. in computer science
and engineering from IKG Punjab Technical University, Jalandhar, Punjab, India.
Currently, he is working as an assistant professor at DAV Institute of Engineering and
Technology, Jalandhar, Punjab, India. He has published more than 50 research papers
in various international journals, international conferences, and national conferences. His
research interests include wireless sensor networks, computational intelligence, and
digital image processing. https://orcid.org/0000-0002-9859-6193
understanding of the world and never passes up the opportunity to learn. Currently, he
is a pricing actuarial executive in the life insurance industry. https://orcid.org/0000-
0002-1605-6477
Gulab Kumar Patel received his master's in mathematics and computing from Indian
Institute of Technology, Guwahati, Assam, India, in 2017. Currently, he is pursuing his
doctoral work on queuing theory in the faculty of Mathematical Sciences from Indian
Institute of Technology (Banaras Hindu University), Varanasi, Uttar Pradesh, India. His
area of research interests fall into realms of deep learning, statistics, and queuing theory.
https://orcid.org/0000-0002-5641-8532
research project related multimodal AI and has had formidable ranks in various data
science challenges and hackathons. His research interests include computer vision, natural
language processing, and time series forecasting analysis. https://orcid.org/0000-0002-761
9-3553
Lim Geok Shan graduated summa cum laude from Singapore Management University
in 2020 with a bachelor of science (Information Systems) and a second major in
advanced business technology (Information Security and Assurance). During her time as
an undergraduate, she conducted a systematic literature review of software multitenancy
architecture. She also worked as an undergraduate teaching assistant for software
engineering and database management classes. She has a keen interest in the field of
software engineering and security. https://orcid.org/0000-0003-1965-4648
include artificial intelligence, machine learning, computer security, and wireless sensor
networks. https://orcid.org/0000-0001-7686-8496
Brian R. Tan focuses on the study of value-creation in his research. He obtained his
Ph.D. from the University of Seattle, Washington, and has served on the faculty at the
Nanyang Business School at Nanyang Technological University (NTU) and the
National University of Singapore (NUS) Business School. His industry background
comes from management consulting at the Boston Consulting Group, and B.R.I.T.
Management Consulting. He also serves as an advisor with a start-up marketing
agency in Vietnam called K2, Kreative Kommunications. His efforts at integrating
Contributors xvii
academia with industry have led to the development of a thinking framework called
the “Wisdom Approach.” It utilizes quantum mechanics principles with broad neuro-
science foundations and supports teaching the cognitive aspect of wisdom. The
application component of the “Wisdom Approach” has been used to teach MSc and
MBA students at NUS. Brian is currently applying it to create better thinking
machines and artificial wisdom. https://orcid.org/0000-0002-0275-846X
CONTENTS
1.1 Introduction ......................................................................................2
1.2 Quantum Computing Fundamentals ................................................ 4
1.2.1 Key Concepts ....................................................................... 4
1.2.2 Hardware, Software, Alorithms, and Workflow .................6
1.3 Quantum Computing Needs and Service Industry Applications....9
1.3.1 Business Needs and Concerns .............................................9
1.3.2 Decision Problem Framing and Computation...................11
1.3.3 The Range of Business Problem Areas That Can Be
Addressed ...........................................................................12
1.3.4 The Unique Role of Quantum Computing in Financial
Services Applications.........................................................14
1.4 Application Framework.................................................................. 16
1.4.1 Algorithm Design...............................................................17
1.4.2 Software Development.......................................................18
1.4.3 Hardware for Quantum Computing...................................21
1.4.4 Integration with Other IT Systems in the Firm ................22
1.5 Case: Implementing a Quantum Neural Network
for Credit Risk................................................................................22
1.5.1 Credit Risk Assessment .....................................................22
1.5.2 Algorithm Design for a Quantum Neural
Network (QNN)..................................................................24
DOI: 10.1201/9781003132080-1 1
2 Data Science and Innovations for Intelligent Systems
1.1 INTRODUCTION
Quantum computing is a key part of building an intelligent systems infrastructure
for Society 5.0 and can be used in the future across the main pillars of fintech,
healthcare, logistics, and artificial intelligence (AI). Intelligent systems based on
data science are machines that are sufficiently advanced to be able to perceive and
react to external events. Quantum computers offer various avenues to go beyond
systems using classical computers and extend computational excellence beyond its
current state. Digital innovation underpins the concept of Society 5.0 for a better
future with an inclusive, sustainable, and knowledge-intensive society that uses
information computing. A key to realizing this society is to utilize gargantuan
volumes of data in real-time in intelligent systems. The sharing of information in
Society 4.0 has been insufficient and integration of data problematic, whereas
Society 5.0 integrates cyberspace and physical space. For example, in Society 5.0,
the huge amount of data from physical Internet of Things (IoT) devices are required
to be analyzed, processed, and fed back to robotic devices interacting with people in
various forms. In Japan alone, the next 15 years is expected to see a growth in IoT
and robotics of US$20 bn and US$70 bn, respectively (JapanGov News, 2019).
However, the aim of Society 5.0 is to balance economic development and solutions
for social issues to bring about a human-centered society. This chapter shows how
quantum computing can be applied to many current challenges and open up new
opportunities with innovative ways that align better with human thinking.
Classical computing has brought society great benefits over many years from the
abacus 3,300 years ago through to modern computing from Alan Turing in the 20th
century – to the latest smartphones we are now familiar with. Computers have enabled
products and services that humans cannot provide alone such as increasing productivity,
enhancing communication, storing vast amounts of data, sorting, organizing, and
searching through information amongst many more. However, many problems still exist
such as data security, scalability, manageability, and interoperability. Furthermore,
Moore’s Law increases in computing power is now beginning to fail (Loeffler, 2018).
Stefan Filipp, a quantum scientist at IBM Research, has stated that to “continue the pace
of progress, we need to augment the classical approach with a new platform, one that
follows its own set of rules. That is quantum computing” (Singh, 2019). Using the
advantages of quantum over classical computing, it is possible to increase computing
capacity beyond anything that classical computers can achieve.
Quantum Computing 3
Quantum computing was suggested in the 1980s by Manin (1980) and Feynman
(1982). In the past few years, it has become a reality and accessible to everyone,
with IBM putting the first quantum computer on the cloud in 2016. Now, in 2021,
there are dozens of quantum computers online with processing capabilities much
better than the first one. While there is little doubt that quantum computers can
outperform classical computers for some processes, such as unstructured search
problems (Grover, 1996), it is not clear whether and how quantum computing will
be advantageous for a particular business need or, indeed, worth the effort to in
vestigate further.
This chapter is aimed at providing a framework to assess the likelihood that
quantum computing will be an area that is worthwhile to get involved in for par
ticular business opportunities and challenges. The main differences for quantum
computing are superposition and entanglement. Traditional computers use bits of
either 0 or 1. In contrast, quantum computers use qubits existing in a state that is
best described as the probability of being either 0 or 1. This is called the super
position of states (Nielsen & Chuang, 2010).1 Qubits also exhibit entanglement,
whereby they may be spatially nearby or far apart, may interact with one another at
certain times, and yet are not able to be characterized as being independent of one
another. The result is that two qubits may work together as if they were one larger
qubit. This is fundamentally different from bits that are always kept separate in
classical computing. However, current quantum computers are noisy and have an
insufficient number of qubits to be able to show provable advantages. And even the
widely publicized Google experiment (Arute et al., 2019) is still held to be con
tentious (Pednault, 2020). Even more contentious are annealer-type quantum
computers (Rønnow et al., 2014). These will not be covered in this chapter as a
result, and we will focus on gate-type quantum computers instead.
Considering the Society 5.0 issues of data volumes, real-time processing and
linking data, we present a framework to assess what business needs may potentially
be addressed by quantum computing and how quantum computing is different to
classical systems. There are four areas of concern: the data, the processing, the
infrastructure, and the environment. (See Figure 1.1.) First, data may be complex,
FIGURE 1.1 The main areas of concern in the quantum application framework.
4 Data Science and Innovations for Intelligent Systems
FIGURE 1.2 Interference pattern from a simulated double-slit experiment with electrons.
Source: Alexandre Gondran, distributed under a CC-BY-SA-4.0 license.
6 Data Science and Innovations for Intelligent Systems
results of the quantum circuits are then fed to classical procedures for calcu
lation and optimization to determine the parameters of a quantum circuit in the
next iteration of the algorithm. This hybrid approach enables harnessing the
power of quantum computers in the NISQ era before QEC becomes widely
available.
Quantum computing workflow stages and examples. A typical quantum program
workflow includes three stages: data loading, data processing execution, and data
extraction.
• In the data loading stage, data are loaded into the memory of classical
computer and converted to the states represented by qubits.
• In the data processing execution stage, a qubit’s state is changed by the
application of quantum gates. A compiler converts a logical circuit to a circuit
that can be executed on a physical quantum processor, considering physical
qubit connections and native gate sets.
• In the data extraction stage, all qubit states are read out by measurements.
Due to the probabilistic nature of quantum states, multiple measurements are
usually needed to sample the probability distribution in order to obtain a
meaningful understanding of the solutions.
We next will look at Qiskit. It consists of four different modules: Terra for
writing and running quantum circuits; Aer for high-performance simulation;
Ignis for analyzing and mitigating noise; and Aqua for quantum algorithms and
applications. Using Qiskit and the IQX, we illustrate an example of how a
quantum program is executed on a quantum computer via the cloud. (See
Figure 1.4.)
For this circuit, we don't need to load any data as the qubits are initialize to |0〉 by
default. In the circuit execution stage, the program written in Python first needs to
go through a compiler to convert it to a circuit that can run on a five-qubit quantum
processor, such as the ibmq_vigo quantum processor. The H gate in Figure 1.3 is
converted to a U2 gate that is native to IBM quantum processors. Such processors
are superconducting devices that are usually not connected to all of the other qubits.
However, the circuit written in Qiskit does not take this into account. So, it’s the
compiler’s job to convert the logical circuit in Figure 1.3 to a circuit that can be run
on the actual hardware. (See Figure 1.4 again.)
If a CNOT gate is applied to qubits that are not directly connected, the compiler
will need to apply a SWAP gate to move the quantum states of the qubits to two
qubits that are connected. SWAP gates are implemented by using three CNOT
gates, each of which generally has a ten times higher error rate than single qubit
gates have. In the NISQ era, quantum processors do not have QEC and any errors
may make a quantum program fail completely.
In Qiskit, this optimization procedure is implemented by a transpiler (i.e., a
source-to-source compiler or transcompiler) consisting of a series of passes
that optimize circuits based on different algorithms. The transpiled circuit is
converted to a quantum object (Qobj) file and then sent to the IQX system
(McKay et al., 2018). The Qobj file’s contents control the electronics necessary
to convert the program into microwave pulses transmitted to the quantum
processor inside a cryogenic dilution refrigerator, which ensures that a low
temperature is maintained. At the end of a quantum program, all the qubits will
be read out, and the circuits and measurements will have run multiple times to
sample the measurement outcome instead of only capturing a single-point
measure.
TABLE 1.1
Concerns and Related Business Problems to Consider
Managerial Concerns Examples of Related Business Problems
Data and information Conversion of data with regard to numerous forms to information/
knowledge; text, sentiments, natural language, images/videos,
map/spatial representations; and firm/competition/market sources
Explanatory power and Power of varied solutions/approaches; robustness/vulnerability to
processing data problems; effectiveness of handling different kinds of
complex problems; trying to match human-related conditions
Infrastructure and capabilities Tech infrastructure; computational/staff support; human limitations
in working on NP-hard vs. soft organizational problems; and
limit to value in firm-level data gathering/problem models
Environment and regulation Business sustainability, fair allocation of resources; appropriate use
of physical/human resources; ensure compliance; and protect
personal info (customers/partners/employees)
Quantum Computing 11
TABLE 1.2
Problems that Quantum Computing Addresses: Optimization of Complexity,
Stochastic Drivers, Real-Time Computation, Intelligent Simulation, and
Rugged Landscape Analytics
Problem Characteristics Explanation Examples
Complexity in optimization and Solves NP-hard models for shortest- Traveling salesman
simulation. times, shortest-routes, lowest problem (TSP).
costs. Traffic flow optimization.
Airline route scheduling.
Stochastic modeling and solution Leverages quantum (qubit) Product delivery
considerations are prominent. entanglement and probabilistic networks.
superposition of 0/1 bits. Taxi routing in congested
traffic.
Service system control
with measure errors.
Real-time solutions are required Applies quantum computing speed Perishable goods revenue
by business. for app-specific improvements vs. yield management.
Moore’s Law limits. Real-time financial
portfolio risk
management.
Problems conceptualized for Landscapes with uplifting mountains Terrorist network
rugged landscape quantum and settling low points for member identification.
computing. optimization. Voice, speech, and facial
recognition.
Autonomous and
driverless vehicle
routing.
Intelligence needed for obtaining Wisdom-based problem Smart mobility platform
solutions appropriate for representation applied to multi- apps for people.
individuals. factor and soft model choices. Pollution mitigation,
sustainability controls.
Genomic data analytics
for personal care.
Quantum Computing 13
routing (Burkacky, Pautasso & Mohr, 2020). These involve the conceptualization of
related problems with rugged landscape optimization (i.e., discontinuous modeling
surfaces), so that the typical methods of hill climbing in optimization and ML are
reduced in their power, especially with dynamic changes in their content and en
vironment. We note the innovations based on the “changing landscape” analogy for
problem identification and quantum computational methods. Finally, there are many
such problems that require a smart approach, for “wicked” operational, social, and
healthcare problems, like smart mobility platform design for changing urban traffic
and transportation opportunities (Akrout, 2020), and policy analytics for pollution
and sustainability, as well as genomic data analytics.
estimate at some level of statistical certainty over time. These states can be de
scribed in mathematical finance as wave functions, which quantum computing
hardware has the potential to speed up the simulations in comparison to more speed-
limited classical computer hardware and algorithms. Another consideration going
forward is that the extent to which computational speed and power are likely to
become available with lower electricity costs, and beneficial implications for more
sustainable electricity consumption by financial institutions.
An application to securities trading settlement transactions, involving the ex
change of a delivered financial instrument for an irrevocable cash payment, has
been reported by Barclays Bank and IBM Research (Braine, Egger, Glick, &
Woerner, 2019). The authors utilize quantum algorithms to make a mixed-binary
math programming model’s optimization faster. This is done for value maximiza
tion of continuously submitted batches of securities trades, with settlement pro
cessing that considers counter-party credit, collateral facilities, and regulatory
compliance rules as objective function constraints. Traditional computation uses
problem representations that support simulated annealing, which mimics a physical
process of heating some material and lowering its temperature gradually. This re
duces material defects, and the overall energy of the system. The analogy for fi
nance is related to how computational algorithms approximate globally optimal
solutions in a complex and constrained system, based on the weighted sum of
settled transactions. The basic math programming formulation is transformed into
an unconstrained model with a lambda-penalty function (like Kuhn-Tucker quad
ratic optimization) to support a solution with one qubit for each of the securities
transactions to be settled, and a wave function for each possible settlement trans
action that together form a batch for actual settlement. Quantum computation le
verages unique features of the stochastic optimization, while reducing the liquidity
risk for a participant that cannot settle its net funds position, and credit risk for
system participants, should there be a fall in the value of traded securities.2
Another finance problem that deserves comment was presented by Woerner &
Egger (2019). It is on quantum risk analytics, in which the quantum amplitude
estimation (AE) algorithm is estimated for an unknown parameter. The problem the
authors applied their approach to is the estimation of the uncertain price evolution
for a U.S. Treasury bill, with a daily trading value of about US$500 bn and ag
gregate government debt as of 2016 of approximately US$14.8 tr. T-bill prices are
subject to yield curve risk over time (i.e., as a fixed income security, from changing
interest rates across the bills’ maturities). For their analysis, the authors used
constant maturity treasury (CMT) rates, to calculate the daily risk of a one-bill
portfolio toy problem.3 They did this for one-day changes in CMT based on the
distributions of three correlated, underlying explanatory principal components
called shift, twist, and butterfly. They are known to account for 96% of CMT’s daily
variations. Among them, only the first two were retained due to the low correlation
(quantum entanglement) of the third component with them (i.e., due to its in
dependence and thus lack of suitability for quantum analysis).
Three qubits were used to represent shift uncertainty, and two were used to
represent twist uncertainty. The authors’ approach was intended to deliver a
quadratic speed-boost in comparison to traditional Monte Carlo simulation for
16 Data Science and Innovations for Intelligent Systems
TABLE 1.3
Problem Type, Quantum Properties, and Sample Algorithms
Problem Type Quantum Property Sources of Sample Algos
Black-box and oracle problems, Interference between qubits Deutsch and Jozsa (1992).
discrete logarithm problems, provides an efficient Bernstein and Vazirani (1997).
integer factorization, boson quantum Fourier transform Quantum phase estimation
sampling problems. operation. ( Simon, 1997).
Shor’s algorithm ( Shor, 1997).
Searching an unstructured data set, Amplitude amplification Grover (1996).
BQP-complete problems, using conversion between
decision making, modelling and probability amplitude and
simulation, linear systems. phase.
Element distinctness, triangle- Quantum walks display Ambainis (2007).
finding, rugged landscape. exponential speed-up.
Graph theory problems, minimize Hybrid quantum/classical Quantum approximation
the energy expectation to find algorithms. optimization algo (QAOA)
the ground state energy. ( Farhi, Goldstone, &
Gutmann, 2014).
Variational quantum
eigensolver VQE) ( Peruzzo
et al., 2014).
ML and optimzation including: Uses quantum superposition. QAOA ( Farhi et al., 2014).
least squares fitting, semidefinite VQE ( Peruzzo et al., 2014).
programming (SDP), NNs, and
combinatorial optimization.
18 Data Science and Innovations for Intelligent Systems
The entire scope of the software that needs to be developed can be broken into
various components: preparing and loading the data with classical code; creating a
quantum circuit using qubits and quantum gates; executing the quantum circuit with
classical code using quantum libraries; and processing the output of the quantum
computer with classical code.
Creating the quantum circuit. The code to create a quantum circuit defines the
registers, adds single and multiple qubits gates and measurement instructions.
Registers are of two types: quantum and classical. Quantum registers contain qubits
and classical registers contain classical bits. Classical registers will be used to
collect the results of the quantum circuit execution and may be used to interact with
the quantum circuit during the execution on simulators, such as the IF statement in
Qiskit (Foy, 2019).
Qubits are initialized in the ground |0〉 state. The first operation is the a rotation
gate to encode a classical value or a Hadamard gate to put the qubit into a 50-50
probability superposition. Single- and multi-qubit gates are then used to operate on
qubits affecting the whole state of the quantum register. So, measurements are
performed on the qubits in the quantum registers. The measured qubits may be the
same as the input qubits or they may be ancilla used to collect the final circuit
output.
Executing the quantum circuit. Two architectures are now considered: (1) a static
quantum circuit that is executed once and has all the logic in it, and (2) a variational
approach where the quantum circuit is modified after each run most likely to
converge upon a result.
FIGURE 1.6 The combination of classical and quantum code to execute a quantum circuit.
The shaded area is the extra step for variational quantum circuits.
20 Data Science and Innovations for Intelligent Systems
the same stable form. (See the glossary in Appendix Table A1 for additional
details.) It is likely that the high-level quantum circuit gate operations will
need to be decomposed into the native gates of the quantum computer to
understand the actual circuit depth that will be executed on the backend. Also,
it is necessary to check the scaling of the algorithm’s quantum depth with the
quantum width, since algorithms can scale significantly.
• Variational quantum circuits: The entire system couples the quantum and
classical code. The classical code recreates the quantum circuit after each time
it is executed, depending on the results from the quantum circuit. (See
Figure 1.6.)
The execution of a quantum circuit takes milliseconds, but the whole time for the
call to the quantum computer can take time to come back, especially if the circuit
jobs are queued and there is a significant queue depth. In this case, the calling code
needs to have a wait or callback function to continue the processing after the call is
complete.
Processing the output of the quantum computer. When a quantum computer
provides an output, it needs to be retrieved by a classical computer and processed
to be used by downstream systems. Measurement destroys the quantum state on
the qubit and is usually performed at the end of a quantum circuit’s execution.
Measurements are only performed for the probability amplitude on one axis (the
basis) of the Bloch sphere, which on IBM machines is the z-axis. The results are
acquired from executing the quantum circuit a number of times, called shots,
which default to 1,024. Each time a quantum circuit is executed it only returns a
bit (0/1), depending on the probability amplitude for each state in the quantum
register. For example, in Table 1.4 there are two qubits that have four states in
total. The counts are how many times the circuit gave a 1 in that state. These
counts can be calculated to obtain the probability of each state occurring in the
output. (See Table 1.4.)
To find the probability of each qubit being in the |1〉 state sum the probabilities
for that qubit across all the states. In the above example, with the probability of q0
being |1〉, and 0.33 + 0.36 = 0.69, whereas q1 is 0.31. The probability outputs can
then be analyzed by classical code.
TABLE 1.4
The Count and Probability Example for a 2-Qubit Circuit
State Count of 1 Probability
00 160 16%
01 336 33%
10 158 15%
11 370 36%
Quantum Computing 21
qubits can have more than two states. While the fidelity of even the third state is not
sufficient for computation, this property would increase the computing power fur
ther than now with mn states, where m is the number of states in a qubit and n is the
number of qubits, if a quantum register were possible.
and models are already residing in computing clouds, and we have already solved
the accompanying security and access problems. Thus, connectivity to quantum
systems is not going to add massive architectural complexity. Overall, quantum
neural networks (QNNs) alongside classical processing seem to be a good match for
the business needs.
FIGURE 1.9 Hybrid algorithm using a quantum circuit as a hidden layer in a back-
propagation NN.
Quantum Computing 25
Finally, the output of the last layer is fed back to the input layer adjusted for back-
propagation.
Our approach was to first assess two features of credit data using these simple (1-
or 2-qubit) designs and then to expand them to more features. There are other
algorithms written, including variational approaches (e.g., Tacchino et al., 2019) in
which the states hold weight information, as well as approaches that can also
capture the training accuracy in the phase (e.g., Liao et al., 2019). As the im
plementation of these models is not easy, it is important to start small and increase
complexity after getting meaningful results on smaller problems.
• For the 2-qubit perceptron (see Figure 1.8), classical data preparation is used
at first. The values for each row of data are put onto a z-rotation of the input
qubits, and two more rotations are made after an entanglement for the neuron
weights. A range of weight values are tested for each row of data, the result is
stored outside the quantum circuit, and the best set of weights chosen as the
final best solution.
26 Data Science and Innovations for Intelligent Systems
• For the hybrid approach, there is 1 qubit in a hidden layer between two
classical layers (Jupyter Book Community, 2020). The output from the first
classical layer is applied as a rotation to the qubit in the hidden layer. The
output of the hidden layer then is used as the input to the second classical
layer.
• For the simple perceptron, different single and multiple gates can be selected,
and then the ROC (receiver operating characteristic) and AUC (area under the
curve) metrics can be tested for each design.
• For the hybrid approach, the circuit starts in a simple way with 1 qubit and is
then expanded with multiple qubits and entanglement operations.
Executing the quantum circuit. We next consider how the quantum circuit will
be run.
• For the simple perceptron, the same quantum circuit is executed for each
combination of weight values for each data row and the accuracy of the output
is stored. The most accurate set of weights is then chosen as the best NN
model and the test data set is measured for the ROC and AUC metrics.
• For the hybrid approach, the quantum circuit is embedded with the hidden
layer of a classical NN model. The quantum-related code is coded into a
QuantumClass with Qiskit and a QuantumClassicalClass with PyTorch.
Processing the output. The output of the both models is a single probability of
classification, and a threshold is applied to give a final binary result for the pre
diction of whether a company will default or not. For the simple perceptron model
the output qubit probability of 1 is used. For the hybrid model the output of the
output classical layer provides the classification output. In both instances, the
outputs are analyzed and visualized using standard statistics packages, such as
Sklearn (sclkit-learn.org).
Pinocchio, alla presenza del giudice, raccontò per filo e per segno
l'iniqua frode, di cui era stato vittima; dette il nome, il cognome e i
connotati dei malandrini, e finì chiedendo giustizia.
Il giudice lo ascoltò con molta benignità; prese vivissima parte al
racconto: s'intenerì, si commosse: e quando il burattino non ebbe
più nulla da dire, allungò la mano e sonò il campanello.
A quella scampanellata comparvero subito due can mastini vestiti
da giandarmi.
Allora il giudice, accennando Pinocchio ai giandarmi, disse loro:
— Quel povero diavolo è stato derubato di quattro monete d'oro:
pigliatelo dunque, e mettetelo subito in prigione. —
Il burattino, sentendosi dare questa sentenza fra capo e collo,
rimase di princisbecco e voleva protestare: ma i giandarmi, a scanso
di perditempi inutili, gli tapparono la bocca e lo condussero in
gattabuia.
E lì v'ebbe a rimanere quattro mesi: quattro lunghissimi mesi: e
vi sarebbe rimasto anche di più, se non si fosse dato un caso
fortunatissimo. Perchè bisogna sapere che il giovane Imperatore che
regnava nella città di Acchiappacitrulli, avendo riportato una bella
vittoria contro i suoi nemici, ordinò grandi feste pubbliche, luminarie,
fuochi artificiali, corse di barberi e di velocipedi, e in segno di
maggiore esultanza, volle che fossero aperte anche le carceri e
mandati fuori tutti i malandrini.
— Se escono di prigione gli altri, voglio uscire anch'io — disse
Pinocchio al carceriere.
— Quel povero diavolo è stato derubato di quattro monete d'oro: pigliatelo
dunque, e mettetelo subito in prigione.
— Voi no, — rispose il carceriere — perchè voi non siete del bel
numero....
— Domando scusa; — replicò Pinocchio — sono un malandrino
anch'io.
Cadde così male, che restò col capo conficcato nel fango della strada....
E per l'appunto cadde così male, che restò col capo conficcato nel
fango della strada e colle gambe ritte su in aria.
Alla vista di quel burattino, che sgambettava a capofitto con una
velocità incredibile, il serpente fu preso da una tal convulsione di risa
che ridi, ridi, ridi, alla fine, dallo sforzo del troppo ridere, gli si
strappò una vena sul petto: e quella volta morì davvero.
Allora Pinocchio ricominciò a correre per arrivare a casa della
Fata avanti che si facesse buio. Ma lungo la strada, non potendo più
reggere ai morsi terribili della fame, saltò in un campo coll'intenzione
di cogliere poche ciocche d'uva moscadella. Non l'avesse mai fatto!
Appena giunto sotto la vite, crac.... sentì stringersi le gambe da
due ferri taglienti, che gli fecero vedere quante stelle c'erano in cielo.
Il povero burattino era rimasto preso a una tagliuola appostata là
da alcuni contadini per beccarvi alcune grosse faine, che erano il
flagello di tutti i polli del vicinato.
XXI.
Pinocchio è preso da un contadino, il quale lo costringe a far
da can di guardia a un pollaio.
Una di queste faine, staccandosi dalle sue compagne andò alla buca del casotto.
— Io sono un burattino.
— E fai da cane di guardia?
— Pur troppo: per mia punizione!...
— Ebbene, io ti propongo gli stessi patti che avevo col defunto
Melampo, e sarai contento.
— E questi patti sarebbero?
— Noi verremo una volta la settimana, come per il passato, a
visitare di notte questo pollaio e porteremo via otto galline. Di
queste galline, sette le mangeremo noi, e una la daremo a te, a
condizione, s'intende bene, che tu faccia finta di dormire e non ti
venga mai l'estro di abbaiare e di svegliare il contadino.
— E Melampo faceva proprio così? — domandò Pinocchio.
— Faceva così, e fra noi e lui, siamo andati sempre d'accordo.
Dormi dunque tranquillamente, e stai sicuro che prima di partire di
qui ti lasceremo sul casotto una gallina bell'e pelata per la colazione
di domani. Ci siamo intesi bene?
— Anche troppo bene!... — rispose Pinocchio: e tentennò il capo
in un certo modo minaccioso, come se avesse voluto dire: — Fra
poco ci riparleremo!... —
Quando le quattro faine si credettero sicure del fatto loro,
andarono difilato al pollaio, che rimaneva appunto vicinissimo al
casotto del cane; e aperta a furia di denti e di unghioli la porticina di
legno, che ne chiudeva l'entrata, vi sgusciarono dentro, una dopo
l'altra. Ma non erano ancora finite d'entrare, che sentirono la
porticina richiudersi con grandissima violenza.
Quello che l'aveva richiusa era Pinocchio; il quale, non contento
di averla richiusa, vi passò davanti per maggior sicurezza una grossa
pietra, a guisa di puntello.
E poi cominciò ad abbaiare: e, abbaiando proprio come se fosse
un cane di guardia, faceva colla voce: bù—bù-bù-bù.
A quella abbaiata, il contadino saltò il letto, e preso il fucile e
affacciatosi alla finestra, domandò:
— Che c'è di nuovo?
— Ci sono i ladri! — rispose Pinocchio.
— Dove sono?
— Nel pollaio.
— Ora scendo subito. —
E difatti, in men che si dice amen, il contadino scese: entrò di
corsa nel pollaio, e dopo avere acchiappate e rinchiuse in un sacco le
quattro faine, disse loro con accento di vera contentezza:
— Alla fine siete cascate nelle mie mani! Potrei punirvi, ma sì vil
non sono! Mi contenterò, invece, di portarvi domani all'oste del
vicino paese, il quale vi spellerà e vi cucinerà a uso lepre dolce e
forte. È un onore che non vi meritate, ma gli uomini generosi come
me non badano a queste piccolezze!... —
Quindi, avvicinatosi a Pinocchio, cominciò a fargli molte carezze,
e fra le altre cose, gli domandò:
— Com'hai fatto a scoprire il complotto di queste quattro
ladroncelle? E dire che Melampo, il mio fido Melampo, non s'era mai
accorto di nulla!... —
Il burattino, allora, avrebbe potuto raccontare quel che sapeva;
avrebbe potuto, cioè, raccontare i patti vergognosi che passavano tra
il cane e le faine; ma ricordandosi che il cane era morto, pensò
subito dentro di sè: — A che serve accusare i morti?... I morti son
morti, e la miglior cosa che si possa fare è quella di lasciarli in
pace!...
— All'arrivo delle faine sull'aia, eri sveglio o dormivi? — continuò
a chiedergli il contadino.
— Dormivo: — rispose Pinocchio — ma le faine mi hanno
svegliato coi loro chiacchiericci, e una è venuta fin qui al casotto per
dirmi: «Se prometti di non abbaiare, e di non svegliare il padrone,
noi ti regaleremo una pollastra bell'e pelata!» Capite, eh? Avere la
sfacciataggine di fare a me una simile proposta! Perchè bisogna
sapere che io sono un burattino, che avrò tutti i difetti di questo
mondo: ma non avrò mai quello di star di balla e di reggere il sacco
alla gente disonesta!
— Bravo ragazzo! — gridò il contadino, battendogli sur una
spalla. — Cotesti sentimenti ti fanno onore: e per provarti la mia
grande soddisfazione, ti lascio libero fin d'ora di tornare a casa. —
E gli levò il collare da cane.
XXIII.
Pinocchio piange la morte della bella Bambina dai capelli
turchini: poi trova un Colombo, che lo porta sulla riva del
mare, e lì si getta nell'acqua per andare in aiuto del suo
babbo Geppetto.
Our website is not just a platform for buying books, but a bridge
connecting readers to the timeless values of culture and wisdom. With
an elegant, user-friendly interface and an intelligent search system,
we are committed to providing a quick and convenient shopping
experience. Additionally, our special promotions and home delivery
services ensure that you save time and fully enjoy the joy of reading.
ebooknice.com