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11/28/2015

WhatareNeuralNetworks&PredictiveDataAnalytics?

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WhatareNeuralNetworks&PredictiveDataAnalytics?
Aneuralnetworkisapowerfulcomputationaldatamodelthatisabletocaptureandrepresent
complexinput/outputrelationships.Themotivationforthedevelopmentofneuralnetwork
technologystemmedfromthedesiretodevelopanartificialsystemthatcouldperform
"intelligent"taskssimilartothoseperformedbythehumanbrain.Neuralnetworksresemblethe
humanbraininthefollowingtwoways:
1. Aneuralnetworkacquiresknowledgethroughlearning.
2. Aneuralnetwork'sknowledgeisstoredwithininterneuronconnectionstrengthsknown
assynapticweights.

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Thetruepowerandadvantageofneuralnetworksliesintheirabilitytorepresentbothlinearandnonlinearrelationshipsandintheirabilitytolearn
theserelationshipsdirectlyfromthedatabeingmodeled.Traditionallinearmodelsaresimplyinadequatewhenitcomestomodelingdatathat
containsnonlinearcharacteristics.
ThemostcommonneuralnetworkmodelistheMultilayerPerceptron(MLP).Thistypeofneuralnetworkisknownasasupervisednetwork
becauseitrequiresadesiredoutputinordertolearn.Thegoalofthistypeofnetworkistocreateamodelthatcorrectlymapstheinputtotheoutput
usinghistoricaldatasothatthemodelcanthenbeusedtoproducetheoutputwhenthedesiredoutputisunknown.Agraphicalrepresentationofan
MLPisshownbelow:

ThediagramaboveisantwohiddenlayerMultiplayerPerceptron(MLP).Theinputsarefedintotheinputlayerandgetmultipliedby
interconnectionweightsastheyarepassedfromtheinputlayertothefirsthiddenlayer.Withinthefirsthiddenlayer,theygetsummedthen
processedbyanonlinearfunction(usuallythehyperbolictangent).Astheprocesseddataleavesthefirsthiddenlayer,againitgetsmultipliedby
interconnectionweights,thensummedandprocessedbythesecondhiddenlayer.Finallythedataismultipliedbyinterconnectionweightsthen
processedonelasttimewithintheoutputlayertoproducetheneuralnetworkoutput.
TheMLPandmanyotherneuralnetworkslearnusinganalgorithmcalledbackpropagation.Withbackpropagation,theinputdataisrepeatedly
presentedtotheneuralnetwork.Witheachpresentationtheoutputoftheneuralnetworkiscomparedtothedesiredoutputandanerroris
computed.Thiserroristhenfedback(backpropagated)totheneuralnetworkandusedtoadjusttheweightssuchthattheerrordecreaseswitheach
iterationandtheneuralmodelgetscloserandclosertoproducingthedesiredoutput.Thisprocessisknownas"training".

Thedemonstrationofaneuralnetworklearningtomodelusingtheexclusiveor(Xor)data.TheXordataisrepeatedlypresentedtotheneural
network.Witheachpresentation,theerrorbetweenthenetworkoutputandthedesiredoutputiscomputedandfedbacktotheneuralnetwork.The
neuralnetworkusesthiserrortoadjustitsweightssuchthattheerrorwillbedecreased.Thissequenceofeventsisusuallyrepeateduntilan
acceptableerrorhasbeenreachedoruntilthenetworknolongerappearstobelearning.

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11/28/2015

WhatareNeuralNetworks&PredictiveDataAnalytics?

Agoodwaytointroducethetopicistotakealookatatypicalapplicationofneuralnetworks.Manyoftoday'sdocumentscannersforthePCcome
withsoftwarethatperformsataskknownasopticalcharacterrecognition(OCR).OCRsoftwareallowsyoutoscaninaprinteddocumentandthen
convertthescannedimageintotoanelectronictextformatsuchasaWorddocument,enablingyoutomanipulatethetext.Inordertoperformthis
conversionthesoftwaremustanalyzeeachgroupofpixels(0'sand1's)thatformaletterandproduceavaluethatcorrespondstothatletter.Some
oftheOCRsoftwareonthemarketuseaneuralnetworkastheclassificationengine.

Thedemonstrationofaneuralnetworkusedwithinanopticalcharacterrecognition(OCR)application.Theoriginaldocumentisscannedintothe
computerandsavedasanimage.TheOCRsoftwarebreakstheimageintosubimages,eachcontainingasinglecharacter.Thesubimagesarethen
translatedfromanimageformatintoabinaryformat,whereeach0and1representsanindividualpixelofthesubimage.Thebinarydataisthen
fedintoaneuralnetworkthathasbeentrainedtomaketheassociationbetweenthecharacterimagedataandanumericvaluethatcorrespondsto
thecharacter.TheoutputfromtheneuralnetworkisthentranslatedintoASCIItextandsavedasafile.
Ofcoursecharacterrecognitionisnottheonlyproblemthatneuralnetworkscansolve.Neuralnetworkshavebeensuccessfullyappliedtobroad
spectrumofdataintensiveapplications,suchas:
ProcessModelingandControlCreatinganeuralnetworkmodelforaphysicalplantthenusingthatmodeltodeterminethebestcontrol
settingsfortheplant.
MachineDiagnosticsDetectwhenamachinehasfailedsothatthesystemcanautomaticallyshutdownthemachinewhenthisoccurs.
PortfolioManagementAllocatetheassetsinaportfolioinawaythatmaximizesreturnandminimizesrisk.
TargetRecognitionMilitaryapplicationwhichusesvideoand/orinfraredimagedatatodetermineifanenemytargetispresent.
MedicalDiagnosisAssistingdoctorswiththeirdiagnosisbyanalyzingthereportedsymptomsand/orimagedatasuchasMRIsorXrays.
CreditRatingAutomaticallyassigningacompany'sorindividualscreditratingbasedontheirfinancialcondition.
TargetedMarketingFindingthesetofdemographicswhichhavethehighestresponserateforaparticularmarketingcampaign.
VoiceRecognitionTranscribingspokenwordsintoASCIItext.
FinancialForecastingUsingthehistoricaldataofasecuritytopredictthefuturemovementofthatsecurity.
QualityControlAttachingacameraorsensortotheendofaproductionprocesstoautomaticallyinspectfordefects.
IntelligentSearchingAninternetsearchenginethatprovidesthemostrelevantcontentandbanneradsbasedontheusers'pastbehavior.
FraudDetectionDetectfraudulentcreditcardtransactionsandautomaticallydeclinethecharge.

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