Heliyon (Jan 2024)
Gaussian Bayesian network model of healthcare, food and energy sectors in the pandemic: Türkiye case
Abstract
Healthcare, food, and energy are the basic needs of life in the globalizing world. Humankind's quest to maintain a healthy life and find ways to meet its needs has continued since its existence. The causal relations between the healthcare, food, and energy sectors are explored using data from the pandemic when COVID-19 was a global risk, and human health sustainability underwent a complicated process. It aims to examine the interaction between the healthcare, food, and energy sectors and model the causal relationship within the framework of probabilistic dependencies. For this purpose, the relationships between these sectors during the pandemic are modeled via Bayesian Networks (BNs). This highly successful inference method makes the complex structure of causal relationships graphically understandable. The data consists of stock returns at the end of the business day between March 11, 2020, when the pandemic was declared, and December 26, 2022. Data on 13 stocks actively traded on the Istanbul Stock Exchange (BIST) during the 700 days were obtained from tr.investing.com. Causal modeling uses Gaussian Bayesian Networks (GBNs) for continuous variables. To make the inferences drawn from the data more successful and minimize the loss of information, the GBN model is built with continuous variables. The posterior Probability Density Functions (PDFs) of the stocks in the network are constructed over the structure of the Directed Acyclic Graphs (DAG) of the BNs, and inferences are made by querying possible cases (tips). Markov Chain Monte Carlo (MCMC) simulations are performed with the posterior PDFs, and measures of the central tendency of the stocks are calculated. GBNs are used to generate daily return estimates for ULKER with the lowest MSE (1.06e-03) and RMSE (3.22e-02) values and ULUUN with the highest MSE (3.43e-03) and RMSE (5.83e-02) values.
