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The Unpredictability of Standard Back Propagation Neural Networks in Classification Applications

Shouhong Wang

Management Science · 1995 · Volume 41 · Issue 3

DOI: 10.1287/mnsc.41.3.555

Abstract

This note offers an extension of Tam and Kiang (Tam, K. Y., M. Y. Kiang. 1992. Management applications of neural networks: The case of bank failure predictions. Management Sci. 38 (7) 926–947.). First the weakness of the standard back propagation neural network learning algorithm is discussed, and then a warning is issued regarding applications of artificial neural networks in the management science field. Also suggested is a possible way of improving the performance of neural networks in managerial applications.

Keywords

neural networks, artificial intelligence, classification

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