I. Introduction
Urban traffic control systems (UTCSs) and freeway management systems around the world are collecting large amount of traffic condition data every day. Typical data include volume, flow rate, occupancy, and speed. Development of systems that put these data to good use for traffic control and management has become an active area of ongoing transportation research, which is usually referred to as Intelligent Transportation Systems (ITS) [1]. In the research area of ITS, traffic flow forecasting is a very important issue. Reliable analysis of historical trends of traffic flows is an important input to many of the traffic management and control systems in operation and under development. Some well-known systems, such as the Split Cycle Offset Optimization Technique (SCOOT) system and the Sydney Coordinated Adaptive Traffic (SCAT) system, integrated the traffic flow forecasting function as fundamental modules. Without an effective forecasting capability, these systems would not operate smoothly.