Neural networks

After remaining a long time in academic circles due to their advanced mathematical background, neural networks (NN) rapidly grew in popularity as more practically usable formats are available – like the built-in function of R. NNs are artificial intelligence adaptive software that can detect complex patterns in data: it is just like an old trader who has a good market intuition but cannot always explain to you why he is convinced you should go short on the Dow Jones Industrial Average index (DIJA).

The network architecture consists of a number of nodes connected by links. Networks usually have 3 or 4 layers: input, hidden and output layers, and in each layer several neurons can be found. The number of first layer's nodes corresponds ...

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