# CH16 - Chapter 16 Solutions 1 A video camera should be...

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Chapter 16 Solutions 1. A video camera should be placed in car. Inputs would be the 900 or so “pixels” that describe at any instant what the video camera “sees”. Outputs are the driver’s direction (left right or straight as measured by degrees steering wheel is turned) and driver’s acceleration. Every thousandth of a second yields a row for the training set. 2. See file S_16_2.xls. We ran Predict and found the following results. The RSq between the predicted column and Black-Scholes price was .9994. We found average difference between the neural net predicted price and Black-Scholes price to be 12 cents Note: To determine the absolute deviation for each observation we first needed to delete the range name for the Predict Output. If we do not do this copying the formula =h2-i2 down column j does not work. 3. The file S_16_3 contains the neural network predictions. The RSQ between the neural network predictions and actual cumulative area is .9999 and the average absolute error is .003.

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