What is Fuzzy Logic ?

Fuzzy logic
is a branch of mathematics that deals with uncertainties
by simulating the process of human reasoning.

The rationale behind fuzzy logic
is that decision making is not always a matter of black and white, true or false.
It often involves gray areas where the term maybe is more appropriate.

A computer programmed to use fuzzy logic precisely handles subjective concepts
that humans do not define precisely.

A term such as "warm" is related via precisely defined formulas to an imprecise concept.
For example,
where the concept is "income", "high" coul have values ranging over $200,000 per year
and "moderate" could have values ranging from $75,000 to $150,000 per year.
A loan officer at a bank might use fuzzy values such as high and moderate
when considering a loan application.



Fuzzy logic has also been used in financial analysis and the manufacture of antilock brakes.
In accounting and finance,
fuzzy logic allows you to analyze information with imprecise values,
such as intangible assets like goodwill.


Source:
Introduction to Information Systems - Third Edition
Enabling and Transforming Business
Chapter 11 - Managerial Support Systems
By R. Kelly Rainer, Casey G. Cegielski
Page 380