- CFA Exams
- CFA Exam: Level II 2021
- Study Session 3. Quantitative Methods (2)
- Reading 7. Machine Learning
- Subject 2. Overview of evaluating ML algorithm performance
CFA Practice Question
Which error is irreducible?
B. variance error
C. base error
A. bias error
B. variance error
C. base error
Correct Answer: C
Base error is the variance due to chance. It is not reducible. The other 2 are reducible.
The variance is how much that the estimate varies around its average.
Bias and variance together gives us prediction error.
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