Implement Back-Propagation Algorithm for Classification Problems

In this machine learning project, we will implement Back-propagation Algorithm from scratch for classification problems.

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What will you learn

  • What are Artificial Neural Networks

  • Backpropagation and Forwardpropagation

  • Structure of a Neural Network (Neuron)

  • Input feature Weight Vector, Sum Function, Activation Function, and Bias in the network

  • Defining an activation function and understanding different types of activation function

  • Back Propagation NN is the multilayered feedforward NN

  • Steps in backpropagation algorithm, defining weights forward feeding to get output, and error backpropagation

  • Defining a function for Initializing the network

  • Calculating the neuron activation for an input

  • Defining the Transfer function for neuron activation

  • Defining function for forwarding propagate input to a network output

  • Testing the forward propagation

  • Calculating the derivative of a neuron output

  • Backpropagating the error and storing it in neurons

  • Updating the network weights with calculated error

  • Training the network with some iterations

  • Importing the final dataset for testing created algorithm

  • Preprocessing the dataset and scaling it for better results

  • Feeding the dataset into Artificial Neural Networks and calculating the results

  • Applying cross-validation to prevent overfitting

  • Making the final predictions and calculating the accuracy score

Project Description

From the perspective of risk management, the result of predictive accuracy of the estimated probability of default will be more valuable than the binary result of classification - credible or not credible clients. Because the real probability of default is unknown, so in this machine learning project we present the novel Sorting Smoothing Method to estimate the real probability of default.

With the real probability of default as the response variable (Y), and the predictive probability of default as the independent variable (X), the simple linear regression result (Y = A + BX) shows that the forecasting model produced by artificial neural network has the highest coefficient of determination; its regression intercept (A) is close to zero, and regression coefficient (B) to one. Therefore, among the six data mining techniques, artificial neural network is the only one that can accurately estimate the real probability of default.

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Curriculum For This Mini Project

 
  4-Dec-2016
04h 44m