- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 7. Big Data Projects
- Subject 4. Model Training
CFA Practice Question
Which scenarios will likely lead to underfitting?
II. small dataset
III. small number of features
I. big dataset
II. small dataset
III. small number of features
Correct Answer: II and III
Underfitting refers to a model that cannot learn the training dataset. It occurs when a model is too simple. Informed by too few features or sample size too small - which makes it inflexible in learning from the dataset.
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