Exercise


ABy Admin
May 26'23

Answer

Key: E

A is false, linear regression is considered inflexible because the number of possible models is restricted to a certain form.

B is false, the lasso determines the subset of variables to use while linear regression allows the analyst discretion regarding adding or moving variables.

C is false, bagging provides additional flexibility.

D is false, there is a tradeoff between being flexible and easy to interpret.

Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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