No data items useful in discriminating between bankrupt and nonbankrupt firms should be omitted. Once training is complete, the network can be used to solve problems for which it was created. If the pattern contained in the client firm's data is similar to that of a bankrupt firm, the client firm is classified as a potential candidate for bankruptcy. If the pattern contained in the client firm's data is similar to a nonbankrupt firm's data pattern, the client firm is classified as a nonbankrupt firm. The electronic counterpart of the connections between neurons in a human brain.
Connections provide signal transmission pathways between processing elements.
A positive weight encourages a processing element to output a signal, while a negative weight discourages a processing element's output. A processing element has a weight associated with every processing element from which it receives input. In most systems the assignment of weights is done entirely by computer as it processes data. A mathematical equation that determines the output of a processing element in response to the input data and the weights. The learning law enables the NN to produce more reliable outputs as additional data is entered into the network.