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III. Introduction to Neural Networks And Their Applications - Basics Introduction to Neural Networks and Its Applications I. Introduction of Neural Networks II. Application of Neural Networks III. Theory of Neural Networks IV. An Example . Weather Forcasting I. Introduction of Neural Networks • Learning in Human Brain – Neurons – Connection Between Neurons • Neural Networks As Simulator For Human Brain – Processing Elements or Nodes – Weights Main Applications of Neural Networks • Prediction of Outcomes • Patterns Detection in Data • Classification Why use Neural Networks in Predict II. Applications of Neural Networks • Computer Vision : Character recognition • HNC : Read amount in checks • NESTOR[Reilly et al , 1990]:Mortgage insurance decisions • DAS/LARS[Casselman and Acks,1990] : large diagnostic system • DECtalk[Sejnowski and Rosenberg, 1987] : Convert language to text • Manufacturing System Controller[Park & Kim, 1991] : Ford motor Co.. • Investment Decision Making System: Tong Yang Future & Options in Chicago III. Theory of Neural Networks • Network Structure : Layers, Nodes and Weights Input Layer Hidden Layer Output Layer Training A Neural Networks • The Key to the success of Neural Networks use is collecting a lot of good data • Neural Networks learn from data • Learning is finding best weights values that represent the input and output relationship in Neural Networks Terms in Neural Networks Testing and Validating a Neural Networks • Testing data set : use another new data • Check the performance of trained Neural Networks with a testing data • If it’s performance of test is good , then check validity of Neural Networks with another new set of historical data Prediction with New Data • If the Neural Network's performance in test and validation is good , it can be used to predict outcome of new unseen data • If the performance with test and validation is not good, you should collect more data, add more input variables IV. A Neural Networks Demo Intro to neural networks • http://www.youtube.com/watch?v=DG5UyRBQD4&feature=rellist&playnext=1 &list=PL4FA5D71B0BA92C1C • Demo for stock market prediction http://www.youtube.com/watch?v=QoGUE xdnSDA