Answer to Question 1
Neural networks attempt to mimic the way the human brain works, with its vast network of interconnections. Each neuron constantly summarizes the input it receives and the results determine its outgoing transmissions. When repeated input causes signals to travel the same pathway again and again, the connections grow stronger and the pathway becomes more permanent and easier to activate. Neural nets are widely used where massive data sets are available, such as in the finance industry where detecting fraud is an important application. Analyzing each card transaction in real time, neural nets compare the specific purchase to the cardholder's regular spending habits and also to fraudulent spending patterns.
Answer to Question 2
E