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Neural networks are effective in detecting fraud because they can:

Neural networks are effective in detecting fraud because they can:

PrepAway - Latest Free Exam Questions & Answers

A.
discover new trends since they are inherently linear.

B.
solve problems where large and general sets of training data are not obtainable.

C.
attack problems that require consideration of a large number of input variables.

D.
make assumptions about the shape of any curve relating variables to the output.

Explanation:

Neural networks can be used to attack problems that require consideration of numerous input
variables. They are capable of capturing relationships and patterns often missed by other
statistical methods, but they will not discover new trends. Neural networks are inherently nonlinear
and make no assumption about the shape of any curve relating variables to the output. Neural
networks will not work well at solving problems for which sufficiently large and general sets of
training data are not obtainable.


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