6.8 APPLICATION OF ARTIFICIAL NEURAL NETWORKS
• 4.Association. A neural network can be trained to “remember” a number of unique patterns so that when a distorted version of a particular pattern is presented the network associates it with the closest one in is memory and returns the original version of that particular pattern.
• This can be useful for restoring noisy or incomplete. Type of ANN used for this task include Hopfield networks.
• ANN have been applied in many domains. A survey of their applications in finance can be found in Wallace(2008)and Fadlalla and in Lin(2001).
• Many attempts have been made to use neural network to predict and understand financial markets.