Exclusive Or (XOR) refers to a situation whereby a decision is based 
on one, and only one, of two conditions being satisfied. For 
instance, if I dislike crowds I may decide to go to the beach if it 
is sunny, or if it is a bank holiday, but not both.
This is a Boolian logic function, and if each condition is assigned
a value of 1 if it is met, and 0 if it is not met, then a table can 
be drawn up representing this, with  values or 0 and 1 indicating
the decision:
      1        0
1      0        1
0      1        0
This is a difficult concept for the human mind to grasp; we usually 
function using and/or conditions. For a network, it constitutes the 
basis of the XOR problem. How can a network be constructed so that 
it will arrive at the the correct output when the input data is based 
on XOR reasoning, and has nothing in common?
A network consists of a set of units that are each connected to all 
the units of the next layer, but can only communicate with 
each other by means of very simple signals. 
The basic 2 layer perceptron is not capable of such processing, and 
this was Minsky's critique. What is required to accomplish XOR 
processing is a network such that 
if the input is a pair of binary digits (which can be 0 or 1),
and the output is another binary pair, for the output value to be 1 
of one of the inputs is 1, but 0 if neither or both is 1.
The answer to how this kind of decision can be made lies in the 
network having one or more hidden layers between the input and output 
layers. The units of the hidden layer are isolated from the networks 
environment, and the connections pass from the input layer through 
the hidden layer to the output layer. Each unit at a level is 
connected to all units of the next higher layer. 
The units can only transmit simple numerical values -  the input 
receives 1 or 0 and sends an output value of 1 or 0 along each of its 
connections with other units. Each connection has a weight which is 
either positive, negative or 0, and each unit has a bias. The
incoming value is multiplied by the weight on each of 
its connections, and the sum of the products is added to the bias 
that is associated with each unit. The resulting value is then 
assigned an activation value of 0 or 1, according to the threshold of the 
unit, and if the unit is thus activated it continues to propogate its 
value to the output layer via another weighted connection.
Another advantage of this system is that changing the weights 
allows a network to learn from past experience, 
and thus improve its performance through the process of 
backpropogation.   
    
tion.   
    
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