The document discusses cross entropy loss function which is commonly used in classification problems. It derives the theoretical basis for cross entropy by formulating it as minimizing the cross entropy between the predicted probabilities and true labels. For binary classification problems, cross entropy is shown to be equivalent to maximizing the likelihood of the training data which can be written as minimizing the binary cross entropy. This concept is extended to multiclass classification problems by defining the prediction as a probability distribution over classes and label as a one-hot encoding.
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