What problems can neural networks solve?
The starting point for this book is intelligence density. Intelligence density is a measure of the useful decision support information available.
Dhar and Stein posit a 4 quadrant stretch plot to facilitate the understanding:
- Q1: accuracy, explainability, response speed
- Q2: scalability, compactness, flexibility, embeddability, ease of use
- Q3: tolerance for complexity, tolerance for noise in data, toleance for sparse data, learning curve
- Q4: development speed, independence from experts, computing ease
- Q1 & Q2: Model Related
- Q3 & Q4: Organisation Related
- Q1 & Q3: Quality Related
- Q2 & Q4: Constraint Related
So, the 7 methods are:
- Data driven decision support
- Genetic algorithms: evolving solutions
- Neural networks: simulating the brain to solve problems
- rule-based systems: putting expert reasoning in a box
- fuzzy logic: dealing with linguistic ambiguity
- case-based reasoning: solving problems by analogy
- machine learning: deriving rules from data
As they highlight, utilising the correct method requires:
- an understanding of the range of tools & techniques available to model business problems
Source: My View of IT
Forex Trading What Is The Forex Trading and How to Trade With The Sharks
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