- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 6. Machine Learning
- Subject 2. Overview of Evaluating ML Algorithm Performance
CFA Practice Question
There are in-sample errors (Ein) and out-of-sample errors (Eout). Which combination is an indication of poor generalization?
II. low Ein
III. high Eout
IV. low Eout
I. high Ein
II. low Ein
III. high Eout
IV. low Eout
Correct Answer: II and III
Difference between the fit on training data and test data measures the model’s ability to generalize.
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