All the algorithms in machine learning rely on minimizing or maximizing a function, which we call “objective function”. The group of functions that are minimized are called “loss functions”. A loss function is a measure of how good a prediction model does in terms of being able to predict the expected outcome. A most commonly used method of finding the minimum point of function is “gradient descent”. Think of loss function like undulating mountain and gradient descent is like sliding down the mountain to reach the bottommost point.
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