Here, we will look at an example of a multilayer perceptron model. We will try to predict a potential buyer of a particular item based on an individual's age, income, and gender.
Consider the following, for example:
As you can see, our input predictors that form the Input Layer are age, income, and gender. The outcome variable that forms our Output Layer is Buy, which will determine whether someone bought a product or not. There is a hidden layer where the input predictors end up combining.
To better understand what goes on behind the scenes of a neural network model, lets take a look at a linear regression model.