Fuzzy Euler approximation and its local convergence

Fuzzy differential equation driven by Liu process is an important tool to deal with dynamic system in fuzzy environment. In many cases, however, it is difficult to find analytic solution of fuzzy differential equation driven by Liu process. Based on credibility theory, the Taylor series of fuzzy differential driven by Liu process is given and Euler approximation that use Taylor expansion as the recursion formula is obtained in this paper. Then the local convergence of Euler approximation is deduced.