CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

Which statement is false?
A. The more complex a model, the less the bias error.
B. The more complex a model, the less the variance error.
C. The base error is at where the bias error and variance error curves intersect.
Explanation: The more complex a model, the greater the variance error.

Bias error: measures how the predictor is mismatched with the true model in expectation

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