CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

Some algorithms/models are sometimes referred to as the "black boxes", because they cannot be easily interpreted and understood by end users. Which one of the following is NOT a black box-type algorithm?
A. Principal Components Analysis
B. CART
C. Random Forest
Explanation: Principal components are combinations of the data set's initial features. They typically cannot be easily labelled or directly interpreted by the analyst. It is not easy to interpret individual trees in Random Forest. In CART, however, the tree provides a visual explanation for the explanation.

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