Similarity-based methods (SBM) are a generalization of the minimal distance
(MD) methods which form a basis of several machine learning and pattern re
cognition methods. Investigation of similarity leads to a fruitful framewor
k in which many classification, approximation and association methods are a
ccommodated. Probability p(C\X; M) of assigning class C to a vector X, give
n a classification model M, depends on adaptive parameters and procedures u
sed in construction of the model. Systematic overview of choices available
for model building is presented and numerous improvements suggested. Simila
rity-Based Methods have natural neural-network type realizations. Such neur
al network models as the Radial Basis Functions (RBF) and the Multilayer Pe
rceptrons (MLPs) are included in this framework as special cases. SBM may a
lso include several different submodels and a procedure to combine their re
sults. Many new versions of similarity-based methods are derived from this
framework. A search in the space of all methods belonging to the SBM framew
ork finds a particular combination of parameterizations and procedures that
is most appropriate for a given data. No single classification method can
beat this approach. Preliminary implementation of SBM elements tested on a
real-world datasets gave very good results.