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Basic Question 0 of 32

Which statement is false regarding statistical modelling and machine learning?

A. They both share the same goal: learning from data.
B. They have different assumptions and techniques when analyzing underlying observations. Statistics draws population inferences from a sample, and machine learning finds generalizable predictive patterns.
C. Statistical modelling is a better model when dealing with high dimensionality, while machine learning is a better one with a high degree of non-linearity.

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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain the assumptions and justify the selection of the two-stage DDM, the H-model, the three-stage DDM, or spreadsheet modeling to value a company's common shares;

describe terminal value and explain alternative approaches to determining the terminal value in a DDM;

calculate and interpret the value of common shares using the two-stage DDM, the H-model, and the three-stage DDM;

explain the use of spreadsheet modeling to forecast dividends and to value common shares;

evaluate whether a stock is overvalued, fairly valued, or undervalued by the market based on a DDM estimate of value.

CFA® 2025 Level II Curriculum, Volume 3, Module 21.