Deep Learning: Which Loss and Activation Functions should I use? The purpose of this post is to provide guidance on which combination of final-layer activation function and loss function should be used in a neural network depending on the business goal. This post assumes that the reader has knowledge of activation functions. What are you trying to solve? Like all machine learning problems, the business goal determines how you should evaluate it’s success. Are you trying to predict a numerical value? Examples: Predicting the appropriate price of a product, or predicting the number of sales each day If so, s e e the section Regression: Predicting a numerical value Are you trying to predict a categorical outcome? Examples: Predicting objects seen in an image, or predicting the topic of a conversation If so, you next need to think about how many classes there are and how many labels you wish to find. If your data is binary, it is or isn’t a class (e.g. fraud, diagnosis, likely t...