The Microsoft Neural Network algorithm creates a network that is composed of up to three layers of neurons. These layers are an input layer, an optional hidden layer, and an output layer.
Input layer: Input neurons define all the input attribute values for the data mining model, and their probabilities.
Hidden layer: Hidden neurons receive inputs from input neurons and provide outputs to output neurons. The hidden layer is where the various probabilities of the inputs are assigned weights. A weight describes the relevance or importance of a particular input to the hidden neuron. The greater the weight that is assigned to an input, the more important the value of that input is. Weights can be negative, which means that the input can inhibit, rather than favor, a specific result.
Output layer: Output neurons represent predictable attribute values for the data mining model.
For a detailed explanation of how the input, hidden, and output layers are constructed and scored, see Microsoft Neural Network Algorithm Technical Reference.