Estimating with neural networks

Here comes our fourth model, artificial neural networks (ANNs) or more often we just call them neural networks. The neural network is probably the most frequently mentioned model in the media. It has been (falsely) considered equivalent to machine learning or artificial intelligence by the general public. Regardless, it is one of the most important machine learning models and has been rapidly evolving along with the revolution of deep learning (DL). Let's first understand how neural networks works.

Demystifying neural networks

A simple neural network is composed of three layers, the Input layer, Hidden layer, and Output layer as shown in the following diagram:

A layer is a conceptual collection...