Neural network as challenger in classification tasks

Original by DataQuest, 2017, 6 pages

This summary note was posted on 21 July 2018, by Reinie in Credit risk #neural network, #python

Can use single neuron to do logistic regression (use logit as a smooth function)
Use python’s Kera package (keras.io)
Challenge model with a small neural network of two connected hidden layers with each 10 neurons
Identify possible non linearities by looking at default rate occurrence per driver
Examine gini as a function of driver threshold
For bigger datasets use Python Theano or Tensorflow

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