CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

Which statement is false?
A. A ML algorithm that fits the training date very well will typically predicts well using new data.
B. The more complex a model, the more likely the overfitting will occur.
C. Test sets and validation sets "wear out" with repeated use.
Explanation: A is false. Such a algorithm will typically not predict well using new data. The goal of ML is never to make “perfect” guesses, because ML deals in domains where there is no such thing. The goal is to make guesses that are good enough to be useful.

C is true. That is, the more you use the same data to make decisions about hyperparameter settings or other model improvements, the less confidence you'll have that these results actually generalize to new, unseen data.

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