Activation Function

From Open Risk Manual

Definition

In the context of a neural network based Risk Model (such as the Perceptron), the activation function of a network node defines the output of that node given an input or set of inputs.

It is essentially a choice of functional form, which may have implications for the ease of implementation or performance of the model. It is a generalization of the concept of the distribution of the response variable in e.g. logistic regression versus probit regression models.

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