A modified LAMSTAR neural network and its applications

This paper describes a modification of the LArge Memory STorage And Retrieval (LAMSTAR) neural network. The purpose of the modification is to allow rare events a larger role in decision-making when they are strongly biased towards a particular decision. As a by-product, the modification also permits the introduction of a confidence measure. This measure allows comparison across different network inputs so that the user may choose the "best" solution. The authors have applied the modified LAMSTAR network to a financial forecasting problem.