- 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
The main contributors to overfitting are:
II. data sets are too small.
III. too much complexity in the model.
I. high noise levels in the data.
II. data sets are too small.
III. too much complexity in the model.
Correct Answer: I and III
Overfitting is caused by making a model more complex than necessary. It occurs when a model describes random error or noise instead of the underlying relationship.
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