Deep Learning in Finance Lect7

Question 1

Deep Learning led to the concept of?

Answer 1

Artificial Neural Networks - using layers of artificial neurons to receive input and apply an activation function along with a human set threshold.

Question 2

In single layer neural network, there consists what factors?

Answer 2

1. model inputs - multiple real numbers,
2. Weights, which connect inputs to unit
3. Single model unit
4. Output

Question 3

Model inputs in Single Layer neural networks are usually associated with

Answer 3

real numbers

Question 4

Explain the importance and detail of weights

Answer 4

Weights need high computational power to optimize “w” values, connect input to model to output

Question 5

Output is in Single Layer Neural Networks consist of?

Answer 5

Weighted sum of inputs plus a bias term b, only achieved when input exceeds a threshold

Question 6

3 common activation functions

Answer 6

Identity: f(a) = a
(upwards straight line)
Sigmoid: f(a) = 1/ 1+e^-a (curve)
ReLu: f(a) = max(0,a)

Question 7

Hidden layer is the act of?

Answer 7

Misdirecting weights to another layer

Question 8

Neural network

Answer 8

Parametreized family of non-linear functions

Question 9

Types of Neural network

Answer 9

1. feed forward (acyclic) - single-layer or multi-layer
2. recurrent (cyclic)

Question 10

Key Idea of Neural network Learning

Answer 10

Adjusting the weights, changes the function represented by the neural network
(learning = optimisation in weight space)

Question 11

Difference between target output and network output

Answer 11

Iteratively adjust weight to reduce error

Question 12

Anything in between input and output layer is called

Answer 12

Hidden layer